Stocks climb as construction keeps rising; banks bounce back

NEW YORK (AP) — U.S. stocks are jumping today after the government reported that construction spending reached its highest level in eight years in January, a sign of strength for the economy.

Tech and consumer stocks climbed. Banks, the worst-performing sector on the market this year, recovered some of their losses.

The Dow Jones industrial average rose 274 points, or 1.7 percent, to 16,790 as of 12:15 p.m. Eastern time. The Standard & Poor's 500 index jumped 36 points, or 1.9 percent, to 1,967. The Nasdaq composite climbed 100 points, or 2.2 percent, to 4,658.

The Commerce Department said construction spending rose 1.5 percent in January as outlays on nonresidential buildings and government projects rose. That was the largest gain in eight months and the highest level in eight years.

The report, which came out at 10 a.m., was a good sign for the U.S. economy. Stocks rose and bond prices fell as a result. The yield on the 10-year Treasury note climbed to 1.83 percent from 1.74 percent.

Tech and consumer stocks rose, with the biggest gains going to familiar names. Apple gained $3.37, or 3.5 percent, to $100.09, while Alphabet, the parent of Google, rose $21.21, or 3 percent, to $738.43. Microsoft picked up $1.24, or 2.4 percent, to $52.12 and Facebook stock added $2.75, or 2.6 percent, to $109.67.

Amazon jumped $18.53, or 3.4 percent, to $571.05, and Netflix advanced $3.54, or 3.8 percent, to $96.95. Starbucks rose $1.38, or 2.4 percent, to $59.59.

Bank of America picked up 67 cents, or 5.4 percent, to $13.19 and JPMorgan Chase gained $2.32, or 4.1 percent, to $58.62, leading financial stocks higher. The S&P 500's financial index has slumped almost 11 percent this year, far worse than any other industry, as investors concluded that U.S. interest rates will stay lower for longer than they had previously expected.