U.S. stocks climbed on Thursday after a report showed consumer spending rose more than expected in August, allaying some fears about a potential recession.

The Dow Jones Industrial Average rose 0.8%, while the S&P 500 gained 1% and the Nasdaq Composite advanced 1.1%.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4% in August, the Commerce Department said. Economists had expected a gain of 0.3%.

The data suggested that the U.S. economy remains on solid footing, despite concerns about slowing global growth and the ongoing trade war between the United States and China.

“This is a good sign that the consumer is still healthy and willing to spend,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The rise in consumer spending helped to offset concerns about a weak reading on business investment, which fell for the second straight month in August.

The positive economic data also boosted the dollar, which rose against a basket of currencies.

Treasury yields also increased, with the 10-year yield rising to 1.75%.

The stock market’s gains were broad-based, with all 11 sectors of the S&P 500 rising.

The best-performing sectors were consumer discretionary, technology, and financials.

Shares of Apple rose more than 2% after the company unveiled its new iPhone 11.

The positive consumer spending data also helped to lift shares of retailers such as Walmart and Target.

“The consumer is the engine of the U.S. economy, and as long as they are spending, the economy should be able to avoid a recession,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

However, some analysts cautioned that it is too early to declare victory over the economic slowdown.

“We still have a lot of challenges facing the economy, including the trade war and slowing global growth,” said Kristina Hooper, chief global market strategist at Invesco.

“It’s important to remain cautious and not get too complacent,” she added.