U.S. Stocks Boosted by Recovery Optimism

U.S. stocks rallied on Tuesday as investors were encouraged by signals of economic recovery.

The Group of 20 finance minister meeting concluded during weekend pledged to support the global recovery, which lifted the market sentiment.

Merger news also gave reason for the rally. Deutsche Telekom AGand France Telecom SA plan to merge their British operations, which would form the largest cellphone operator in the country.

Meanwhile, even though Cadbury PLC has rejected Kraft Foods Inc.'s takeover bid, investors still view the acquisition move as a positive sign for economy.

On Tuesday, the dollar fell against other major currencies, while gold rose above 1,000 U.S. dollars an ounce and crude oil settled above 71 dollars a barrel.

The Dow Jones rose 56.07 to 9,497.34. Broader indexes also went higher. The Standard & Poor's 500 index added 8.99 to 1,025.39 and the Nasdaq rose 18.99 to 2037.77.