NEW YORK (CNNMoney.com) -- Stocks rallied Monday after a report showing stronger industrial output in Europe boosted the euro and reassured investors about the strength of the global economy.
The Dow Jones industrial average (INDU) gained 93 points, or 0.9%, and the S&P 500 index (SPX) added 116 points, or 1%. The Nasdaq composite (COMP) rose 30 points or 1.4%.
Stocks gained last week, recovering after falling to a seven-month low early in the week. That positive momentum continued Monday morning as worries about the global economy waned.
Concerns that the European debt crisis would slow the global recovery have dragged on stocks for more than a month, with investors worrying that Europe's problems could yield a double-dip recession in the United States.
But investors have been reassured by steadily improving corporate earnings and indications that the economy is recovering outside the still-struggling job market.
Stock gains were broad based, with 29 of 30 Dow shares advancing, led by Chevron (CVX, Fortune 500), Caterpillar (CAT, Fortune 500), IBM (IBM, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500) and 3M (MMM, Fortune 500).
No major economic news is due Monday, but reports are due later in the week on housing, wholesale and consumer inflation and jobless claims.
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BP: President Obama wants the company to set up a fund to pay for damages from the still-leaking oil well nearly two months after the explosion that triggered the leak. President Obama will visit the Gulf States Monday and Tuesday and will address the nation Tuesday night. Some congressional leaders have suggested the fund should include as much as $20 billion.
Meanwhile, BP (BP) is holding its board meeting Monday as its stock price continued to plummet. BP shares fell $2.59 or 7.62% to $31.38 per share in morning trading.
Euro: The euro rose 1.2% versus the dollar, continuing to recover after touching a four-year low of $1.188 last week. The dollar rose 0.3% against the yen.
World markets: European markets gained. Britain's FTSE 100 rose 0.7%, Germany's DAX rose 1.3% and France's CAC 40 gained 2%.
Asian markets gained. Japan's Nikkei rose 1.8%, Hong Kong's Hang Seng gained 0.9% and China's Shanghai Composite added 0.3%.
Commodities: U.S. light crude oil for July delivery rose $1.77 to $75.55 a barrel on the New York Mercantile Exchange.
COMEX gold for August delivery fell $8.30 to $1,245.60 an ounce.
Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.30% from 3.22% late Friday. Treasury prices and yields move in opposite directions.
