Market Recap: 'May Day' Has Zero Effect on Markets, Dow Closes Highest Since '07

Markets closed up today:

▲ Dow: +0.50 percent

▲ Nasdaq: +0.13 percent

▲ S&P: +0.57 percent

Precious metals:

▼ Gold: up -0.35 percent to $1,661.47 an ounce

▼ Silver: up -0.17 percent to settle at $30.88 an ounce

Commodities:

▲ Oil: +1.18 percent

Markets closed up because:

The fastest growth in U.S. manufacturing in 10 months gave stocks a lift Tuesday and pushed the Dow Jones industrial average to its highest close in more than four years.

Manufacturing expanded last month at the strongest pace since June, according to the Institute for Supply Management. Orders, hiring and production all rose.

A measure of manufacturing employment also reached a nine-month high, a hopeful sign ahead of Friday's monthly jobs report.

The manufacturing news jolted stock indexes out of a morning stupor, although the gains waned throughout the afternoon. The Dow added 65.69 points to 13,279.32, its highest closing mark since Dec. 28, 2007, during the first month of the Great Recession.

Treasury prices fell, and benchmark crude oil rose $1.29 to settle at $106.16 per barrel. Both of those things tend to happen when investors expect stronger economic growth.

In a separate report Tuesday, the Commerce Department said construction spending ticked up in March, following two months of declines.

Other indexes pushed higher. The Standard & Poor's 500 index rose eight points to 1,406. The Nasdaq composite climbed four points to 3,050.

All 10 industry groups within the S&P 500 climbed, led by energy companies. Chesapeake Energy Corp. jumped 6 percent on reports that the company will strip CEO Aubrey McClendon of his chairman's title.

McClendon, Chesapeake's founder, was under fire for taking out more than $1 billion in loans using the company's wells as collateral. Chesapeake recently agreed to end the program that allowed McClendon to take personal stakes in the wells.

The Associated Press contributed to this report.