Wall St gains; crude rises to 2-yr high on Egypt tension

The US markets rebounded on Monday as investors returned to markets after a sharp sell-off on Friday. Infact, the Dow Jones Industrial Index witnessed their best January in 14 years, though political volatility in Egypt kept investors on their toes.

Dow Jones Industrial Average gained 0.58% or 68.23 points at 11891.93. Nasdaq Composite rose 0.49% or 13.19 points at 2700.08. Standard & Poor's 500 added 0.77% or 9.78 points at 1286.12.

In economic data, the Chicago purchasing manager's index recorded a rise in manufacturing activity to 68.8 in January. December posted figures of 66.8. The gain was more than expected, boosted by strong orders and employment.

Personal spending rose 0.7% in December, up from a 0.3% rise in November. Personal income meanwhile rose 0.4%, while savings dropped to 614 billion dollars in December.

In the day's economic data to watch out for, the ISM manufacturing index for January is expected to come in at around 57.5 versus the December figure of 57.

Construction spending for December is expected to come at around 0.2%. Figures for November came at around 0.4%.

The dollar fell around 0.65% versus the euro amid speculations that more gains could be in store after a jump in euro zone inflation bolstered the view that interest rates in the region could rise more quickly than in the US.

US crude oil futures settled at their highest level in 27 months on fears that the civil unrest in Egypt could widen to other Middle East countries and disrupt oil shipments from the region. Brent oil also prices jumped above USD 101 a barrel for the first time since 2008.