April 1st, 2008 15:05 EST
Confidence causes US stocks to climb
U.S. stocks surged more than three percent higher in Tuesday`s trading as some investors expressed confidence that the worst of the credit crisis is over.
Shares of Lehman Brothers Holdings and Swiss bank UBS rose after the two raised a combined $19 billion in capital by issuing new stocks.
The successful effort by the banks eased fears that they might need government help like that given to the investment bank Bear Stearns recently.
Investors were also encouraged by the news from the manufacturing sector. The Institute for Supply Management`s March index rose slightly, beating the expectations of some economists.
New data also showed U.S. construction spending fell less than some economists predicted.
Some information for this report provided by Reuters and AP.