U.S. stocks rally amid economic data, oil decline

U.S. stocks posted sizable gains Monday as Wall Street digested a batch of economic reports amid falling oil prices.

The Dow Jones Industrial Average added 117.52 points, or 0.66 percent, to 17,891.16. The S&P 500 increased 16.13 points, or 0.78 percent, to 2,081.43. The Nasdaq Composite Index gained 0.88 point, or 0.88 percent, to 4,817.59.

U.S. manufacturing activity expanded at a slower pace in April, indicating that low oil prices and a strong U.S. dollar continue to weigh on the industry, according to the Institute for Supply Management (ISM) Monday.

The manufacturing index, also known as the purchasing managers' index, registered 50.8 in April, a decrease of one point from March's reading of 51.8.

"With the ISM at 50.8, there is little reason to believe the manufacturing sector is on the cusp of a strong rebound," said Jay Morelock, an economist at FTN Financial, in a note.

Meanwhile, adjusted for seasonal influences, the final Markit U.S. Manufacturing Purchasing Managers' Index registered 50.8 in April, down from 51.5 in March.

The U.S. Department of Commerce announced Monday that construction spending during March was estimated at a seasonally adjusted annual rate of 1,137.5 billion U.S. dollars, 0.3 percent above the revised February estimate.

Investors will keep a close eye on Friday's nonfarm jobs report for more clues on the U.S. Federal Reserve's next rate hike.

Oil prices were also in focus, which dipped more than 2 percent Monday, as traders were looking for excuses to lock in profits after recent solid gains.

U.S. oil surged about 20 percent in April, the largest monthly gain in a year, helped by a weaker U.S. dollar and reduced U.S. crude output. Endit