(Close): The Dow and S&P 500 both closed at record highs on Tuesday after positive manufacturing data from China and the US boosted investors' confidence in the global economy.
The Dow Jones Industrial Average rose 129.47 points to 16,956.07 - nearing the closely-watched 17,000 level - while the wider S&P 500 index ended 13.09 points higher at 1,973.32.
Both hit fresh all time highs.
The tech-heavy Nasdaq index rose 50.47 points to 4,458.65.
"The market has some pent-up demand" after trading sideways for the last week or so, said Art Hogan, chief market strategist at Wunderlich Securities.
China's manufacturing activity grew at its fastest pace for six months in June, suggesting that recent stimulus moves have started to have an impact.
A later survey showed US manufacturing growing in June but at a marginally slower pace than in May.
The Institute for Supply Management said its index of national factory activity was 55.3 in June, compared to May's 55.4 reading.
A reading above 50 indicates expansion.
Shares in the online TV streaming company Netflix jumped 7.44% on the Nasdaq after Goldman Sachs raised its rating on the company to "buy" from "neutral".
The investment bank estimates that the potential audience of subscribers will double over the next three years to 207 million people.
