U.S. stocks advanced, sending the Standard & Poor’s 500 Index above 1,000 for the first time since November, and commodities surged the most since March while Treasuries and the dollar fell on speculation the recession is ending.

Manufacturing and construction spending in the U.S. topped forecasts, and China’s factory output expanded. Copper climbed to the highest in 10 months, driving the UBS Bloomberg Constant Maturity Commodity Index to a 4.1 percent gain. Crude oil exceeded $70 a barrel for the first time since July 1. Ten-year Treasury notes declined the most in almost two months, and the dollar sank to the worst level against six trading partners since the weeks after Lehman Brothers Holdings Inc. collapsed.

The S&P 500 added 1.5 percent to 1,002.63 at 4 p.m. in New York. Wells Fargo & Co. and Bank of America Corp. rose more than 3.5 percent after HSBC Holdings Plc, Europe’s biggest bank, reported an unexpected profit of $3.35 billion. The Nasdaq Composite Index topped 2,000 for the first time since October.

Manufacturing in the U.S. shrank less than forecast as stimulus-induced gains in demand worldwide helped resuscitate factories from the worst slump in three decades. The Institute for Supply Management’s factory gauge rose to an 11-month high of 48.9 in July, according to the Tempe, Arizona-based group. Readings below 50 signal contraction. A report from the Commerce Department showed June building projects climbed 0.3 percent, helped by higher public spending.

(Source: Boomberg.com)