Investing.com - A better-than-expected report on U.S. retail sales sent stocks posting strong gains on Monday, as investors used the data as an excuse to jump in and snap up nicely-priced shares and take back losses from last week's selloff.
At the close of U.S. trading, the Dow 30 rose 0.91%, the S&P 500 index rose 0.82%, while the Nasdaq index rose 0.57%.
The Commerce Department reported earlier that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain. Retail sales in February were revised up to a 0.7% increase from a previously estimated 0.3% rise.
Core retail sales, which exclude automobiles, rose 0.7% last month, beating expectations for a 0.5% reading, after a 0.3% gain in February
Consumer demand drives the bulk of U.S. economic output, and the numbers fueled expectations that the U.S. economy continues to improve and will bolster corporate fundamentals up with it.
The data took back some of last week's strong losses by bringing in the bottom fishers.
The Biotech, Internet and other tech companies plunged last week on concerns that valuations have grown too high after a five-year bull market fueled in part by loose monetary policies, though Monday's data fueled hopes that more defensive plays may prove to be good buys going forward.
Elsewhere in the U.S., data revealed U.S. business inventories rose less than expected in February.
In a report, Census Bureau reported earlier that U.S. business inventories rose 0.4% in February from 0.4% in the preceding month.
Analysts were expecting a 0.5% reading in February.
Leading Dow Jones Industrial Average performers included Visa Inc (NYSE:V), up 2.22%, Cisco Systems Inc (NASDAQ:CSCO), up 1.71%, and Nike Inc (NYSE:NKE), up 1.62%.
The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 0.62%, J P Morgan Chase & Co (NYSE:JPM), down 0.62% as well, and Microsoft Corporation (NASDAQ:MSFT), down 0.06%.
European indices, meanwhile, finished higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.39%, France's CAC 40 rose 0.43%, while Germany's DAX rose 0.26%. Meanwhile, in the U.K. the FTSE 100 rose 0.34%.
In the U.S. on Tuesday, Fed Chair Janet Yellen is to speak; her comments will be closely watched.