US factories boomed at close to a 20-year high in February suggesting a turnaround in hiring may be on the horizon.
The Institute for Supply Management said its monthly manufacturing index fell to 61.4 in February from January's two-decade high of 63.6, showing the ninth straight month of expansion in the sector that makes up less than a fifth of the US economy.
Even though the index fell below the 62.0 level forecast by economists, the strength of the survey's components gave a lift to stock.
A reading above 50 in the index shows expansion. All 20 industry sectors in the survey also showed expansion.
The ISM manufacturing report is based on monthly responses by purchasing executives at more than 400 industrial companies, from textiles and chemicals to paper and computers.