Stocks in the United States surged on Tuesday. An unexpected rise in housing starts pushed Home Depot and other retailers higher.
Energy shares were also up after a rise of almost 4% in US crude oil futures. Shares in Chevron rose 3.8% to $US65.31.
Home Depot's stock rose 6.7% to $US21.48, after housing starts rose 22.2% in February.
The Nasdaq reversed a 1.9% slide on Monday.
The Dow Jones industrial average gained 178.73 points, or 2.48 percent, to 7,395.70.
Standard & Poor's 500 Index rose 24.23 points, or 3.21 percent, to 778.12. The Nasdaq Composite Index jumped 58.09 points, or 4.14 percent, to 1,462.11.
The Dow average is now up 4.7% for the month but remains down 15.7% for the year to date.
The Dow Jones home construction index rose 6.3% after the Commerce Department said housing starts rose 22.2% in February - the biggest percentage rise since January 1990, and also the first increase since last April.
Trading was moderate on the New York Stock Exchange, with about 1.49 billion shares changing hands - matching last year's estimated daily average.
About 2.12 billion shares were traded on the Nasdaq - below last year's daily average of 2.28 billion.
