The tech and capital goods sectors are leading a stock market rally on Monday on bullish industry reports and economic data that points to recovery.

The S&P 500 Index gained 10.20 points, or 0.92 percent, to trade at 1,114.69 at 11:35 am. The Dow Jones Industrial Average gained 84.57 points, or 0.82 percent, to trade at 10,409.83.

The tech heavy Nasdaq Composite leads with a gain of 1.31 percent.

Capital goods firms are among the leaders of the rally. Caterpillar (NYSE:CAT) gained 2.14 percent and Northrop Grumman (NYSE:NOC) gained 3.09 percent.

The technology sector is also leading. Apple (NASDAQ:AAPL) is up 1.87 percent. Intel (NASDAQ:INTC), among the biggest gainers of the Dow, is up 1.72 percent. Chipmaker NVIDIA (NASDAQ:NVDA) surged 3.87 percent.

The Semiconductor Industry Association reported Monday that global semiconductor sales, which were $22.5 billion in January, rose 47.2 percent year-on-year.

Personal spending in the U.S. also rose more than expected in January. The report, released at 8:30 am EST by the Commerce Department, showed the fourth consecutive monthly increase.

Investors also cheered a manufacturing report by the Institute for Supply Management, released at 10:00 am EST. It showed expanding activities in the manufacturing sector for the seventh straight month.

The financial sector is lagging on Monday as HSBC's (NYSE:HBC) earnings for the year missed expectations on rising loan impairment charges.

The American Depository Receipts (ADRs) of HSBC (HYSE:HBC) are down 6.77 percent and those of Lloyd Banking Group (NYSE:LYG) are down 5.54 percent. JPMorgan (NYSE:JPM), the leading decliner of the Dow, is down 0.86 percent.

Two financial stocks are notable exceptions to the lagging sector; AIG (NYSE:AIG) is up 7.51 percent on news that it is selling a $35.5 billion unit to U.K.'s Prudential PLC and the ADRs of National Bank of Greece (NYSE:NBG) are up 2.33 percent on renewed speculation of a German-backed bailout.

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