US stocks climbed more than 2% on Tuesday as data showing the biggest monthly jump in consumer confidence in six years lifted hopes of an economic rebound.
The monthly Consumer Confidence Index surged in May, strongly topping expectations.
Consumer discretionary shares were among the top gainers on the Dow and S&P 500, with McDonald's Corp up 3.1%, retailer Macy's Inc up 5.9% and the S&P consumer discretionary index up 3.8%.
Shares in Apple Inc closed 6.8% higher after Morgan Stanley said the iPhone will drive strong earnings growth over the next two years.
The Dow Jones rose 196.17 points, or 2.37%, to finish at 8,473.49.
The Standard & Poor's 500 Index was up 23.33 points, or 2.63%, at 910.33.
The Nasdaq Composite Index was up 58.42 points, or 3.45%, at 1,750.43.
European stocks benefit from US data
European stocks also closed higher on Tuesday on the back of the US consumer confidence data.
The FTSEurofirst 300 index of top European shares rose 0.9% to close at 865.14 points, having been as low as 842.26 earlier.
In London, the FTSE 100 closed 46.43 points higher at 4,411.72, reversing earlier losses.
In Frankfurt, the DAX index ended at 4,985.6 points, up 67.15 or 1.37%.
In Paris, the CAC-40 index closed at 3,270.09 points, up 33.93 or 1.05%.
