Markets surge on home sales data, weak dollar

A report of better than expected housing data and a weak dollar sent major stock indexes soaring Monday. The Dow Jones industrial average rose 1.5% and the Standard & Poor's 500 jumped 1.7% in early morning trading before retreating a bit before the close. The broad rally ended the market's three-day slide from last week and had traders wondering if investors were confident enough to return to the equity markets in droves.

The Dow Jones industrial average ($INDU) rose 132.79, or 1.29%, to 10,450.95. The Standard & Poor's 500 index rose ($INX) 14.86, or 1.36%, to 1,106.24, while the Nasdaq ($COMPX) composite index rose 29.97 or 1.4%, to 2,176.01.