Manufacturing further expanded in February, although at a slightly slower pace than expected, according to the Institute for Supply Management.

Analysts said the sector was consolidating its gains and preparing for stronger growth in the future.

Although the institute’s main business index fell to 61.4 in February compared with a revised 63.6 in January, analysts noted that the group’s subindex for employment was surprisingly higher.

"This helps support the feeling that the employment picture is improving," said Peter Dunay, chief market strategist at Wall Street Access.

According to preliminary calculations, the Dow jumped 94.22, or 0.9 percent, to 10,678.14, its biggest one-day point gain since Feb. 11. The technology-focused Nasdaq rose 27.98, or 1.4 percent, to 2,057.80, posting its biggest gains since Feb. 6 despite concerns about the strength of semiconductor stocks.

The Standard & Poor’s 500 index was up 11.03, or 1 percent, at 1,155.97, posting its biggest one-day gain since Feb. 17.

Another indicator of employment growth will come Friday as the government issues its report on job creation during February.

Before the session began, the Commerce Department reported consumer spending rose 0.4 percent in January, in line with economists’ expectations. After-tax incomes rose 0.8 percent in January, up from 0.3 percent the month before.