Manufacturing leads stocks surge

U.S. equities rose to alltime highs and the dollar strengthened as factory data and the prospect for tax cuts boosted optimism in the economy.

The S&P 500 Index closed at another record to start the fourth quarter and the dollar headed for the strongest level since July after data showed U.S. manufacturing expanded at the fastest pace in 13 years. Oil fell toward $50 a barrel and Treasuries fluctuated. Investors are also watching developments in Las Vegas, where more than 50 people have died in the deadliest shooting in modern U.S. history.

Global shares began the final quarter of the year on firm footing amid signs manufacturing is strengthening. China reported an unexpectedly strong factory gauge and Bank of Japan’s quarterly Tankan survey showed the country’s big manufacturers are the most confident in a decade. While U.S. factories got a lift from two major hurricanes, the U.K. reported slowing growth.

U.S. investors also took into account the prospects that Congress will enact a pro-growth tax plan.

Stocks in Spain slumped and the common currency was one of the worst performers among major peers after a violence-marred vote in Catalonia spurred the regional government to press toward a unilateral declaration of independence. The tensions also had a clear impact in the bond market, with Spanish premiums rising as yields on comparable German debt declined.

The S&P Index climbed 0.4 percent to 2,529.17 as of 4 p.m. New York time. The Dow Jones Industrial Average rose 153 points to 22,558.42, another record close. The Nasdaq 100 Index was steady as tech shares struggled.