Big manufacturers and their suppliers, such as Caterpillar Inc. and US Steel Corp., rose sharply after data showed factory activity in March fell at a slower rate than the month before, while pending home sales rose more than expected in February.

The data was enough to counter a report that showed US private-sector job losses accelerated in March to 742,000, heightening concerns ahead of the government’s monthly payroll numbers on Friday.

The housing and factory data pointed to “an economy that fell off a cliff (and) that may have found a bottom,” said Linda Duessel, market strategist at Federated Investors in Pittsburgh.

“Because we fell off a cliff, you need to get a lot of diverse areas telling us it’s not as bad this month as it was last month and that’s what’s happening.”

The Dow Jones industrial average gained 152.68 points, or 2.01 percent, to 7,761.60. The Standard & Poor’s 500 Index added 13.21 points, or 1.66 percent, to 811.08. The Nasdaq Composite Index climbed 23.01 points, or 1.51 percent, to 1,551.60.

GM’s stock fell 0.5 percent to $1.93, well off its session low at $1.58. In the financial sector, JPMorgan Chase rose 5.9 percent to $28.14 while Goldman Sachs gained 4 percent to $110.29.

In the industrial sector, Caterpillar was up 3.7 percent at $28.99 and U.S. Steel was up 7.1 percent at $22.62.