October's retail report showed a 1.4 percent gain for the month, more than 50 percent better than the 0.9 percent gain economists predicted.
By close, the Dow Jones industrial average added 136.49 points, 1.33 percent, to 10.406.96. The Standard & Poor's 500 rose 1.45 percent, 15.82, to 1,109.30. The Nasdaq composite index added 29.97 to 2,197.85, up 1.38 percent.
On the New York Stock Exchange, 2,485 stocks advanced and 576 declined on a volume of 4.5 billion shares traded.
The benchmark 10-year U.S. Treasury bill rose 20/32 to yield 3.349 percent.
The euro rose to $1.4971 from Friday's $1.4921. Against the yen, the dollar fell to 89.09 yen from Friday's 89.67 yen.
In Tokyo, the Nikkei 225 index rose 0.21 percent, 20.87, to 9,791.18.
In London, the FTSE 100 index rose 1.63 percent, 86.29, to 5,382.67.
Copyright 2009 by United Press International.