On Monday, stocks began the third quarter with 1% or more gain. Data regarding the kick off indicated United States' manufacturing improved in June. It also showed that construction costs hit a four-year high.
The Dow boomed over 160 points in a broad advance. This developed the strongest six months in a year since 1998 for the S&P 500. For the first half of 2013, S&P gained 12.6%.
This year's improvement was brought about by Fed's bond-buying policy. This further aided in increasing Dow Industrials and S&P 500's record high conclusion in late May. The recovery was interrupted by worries regarding Fed's plans about their stimulus project. This sequentially triggered liquidation in stocks. Since October, June was the first negative month for S&P 500.
Furthermore, statistics from the Institute for Supply Management showed shares' extended strong gains for US manufacturing activity. This was a rebound from a surprising contraction in May.
Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh, said "People saw ISM was stronger and slightly higher than consensus and decided to run with it."
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