The US stocks logged their best single-session percentage advance in three months as buyers returned from an extended weekend. Also Read - How ADRs performed
The sharp drop in the dollar, better than expected earnings, positive data and M&A activity boosted the market. Banks were among the major gainers after better-than-expected earnings from British banking giant Barclays. Commodity stocks also saw big gains.
At closing bell, the Dow gained nearly 170 points, or 1.7%, to close at 10,268.81. It was the best point and percentage gain since November 9, last year. The S&P 500 advanced 1.8% and the Nasdaq rose 1.4%.
The dollar fell against the euro which posted its biggest one-day gain since July as traders felt it had slipped too far in recent weeks over worries about Greece's public finances. The dollar index retreated a sharp 0.9%, the dollar's worst drop since late November and a weak follow through from the gains last week.
Oil prices jumped nearly 4% responding to a weaker US dollar, stronger equities, and growing tensions over sanctions against Iran. Expectations of an economic recovery also supported oil prices.
Gold rose almost 2% hitting a two-week high at 1,120.75 dollars an ounce, as the single dollar saw a sharp correction.
Base metals too rallied to multi-month highs. Copper gained for a second day as the dollar declined and speculation that a pick-up in demand may reduce stockpiles. Other metals too logged in strong gains.
