U.S. stocks rose, extending the biggest first-quarter advance since 1998 for the Standard & Poor’s 500 Index, as stronger-than-forecast growth in consumer sentiment and spending bolstered optimism in the economy. The S&P 500 gained 0.3 percent to 1,407.76 at 11:17 a.m. New York time. The gauge has rallied 12 percent since the end of 2011, gaining for a second straight quarter. The Dow Jones Industrial Average added 50.36 points, or 0.4 percent, to 13,196.18 today. The Nasdaq Composite Index rose 0.1 percent to 3,097.45 as a 19 percent rally since Dec. 30 put the gauge on pace for the best first-quarter since 1991. (CCMP) “Things are not going gangbusters, but they are more positive,� said Ann Miletti, senior portfolio manager for Wells Fargo Advantage Funds in Menomonee Falls, Wisconsin. Her firm manages $213 billion. “The tail risk of Europe seems to have gone away. In an environment where you have stocks trading at discounts to historical levels, it does create a sweet spot.� More than $3.6 trillion was restored to U.S. equity values since the S&P 500 reached last year’s low in October amid better-than-estimated economic data. The index climbed 28 percent from Oct. 3 through yesterday. The rally sent the S&P 500 to about 14.5 times reported earnings, the highest valuation since July while below the average since 1954 of 16.4. Monthly Rally The S&P 500 has increased about 3 percent in March (SPX), rallying for a fourth straight month. The Dow has climbed about 1.8 percent since the end of February and is poised to cap a sixth month of gains. Both gauges are headed for the longest stretches of monthly gains since 2009. Over the last 100 years, the Dow has advanced 1.3 percent on average in April (INDU) and gained 57 percent of the time, according to data compiled by Bespoke Investment Group. The index has risen an average 2.1 percent in April over the last 50 years and 2.9 percent in the past 20 years, the data showed, marking the best month for the Dow in both time frames. Stocks rose today as government data showed U.S. consumer spending increased 0.8 percent in February, the most in seven months. Separately, the Thomson Reuters/University of Michigan final index of consumer sentiment for March rose to 76.2. Economists projected a reading of 74.5. Investors also watched the latest attempts in taming Europe’s debt crisis. European governments capped fresh rescue lending at 500 billion euros ($666 billion), after a Germany-led coalition opposed a further expansion of the firewall. To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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