U.S. stocks climbed Wednesday after a report showed retail sales rose in September, a sign the economy may be gaining strength.

The Dow Jones industrial average rose about 145 points in early trading. Broader stock indicators also rose.

The Commerce Department said retail sales rose 0.6 percent last month, better than analysts had expected. Excluding autos, sales rose 0.5 percent.

The retail sales data offered further evidence that the economy is recovering after a severe recession. Consumer spending accounts for about 70 percent of economic activity, so retail sales are a key indicator.

Other economic data released Wednesday also pointed to improvement. The Labor Department said wholesale prices rose 0.9 percent in September, but that was largely due to higher energy costs. Excluding food and energy, wholesale prices were unchanged.

Meanwhile, the Mortgage Bankers Association said mortgage applications rose last week, boosted by lower interest rates.

In corporate news, Alcoa Inc. reported a smaller-than-expected loss for the third quarter. The aluminum maker’s shares rose sharply in early trading.

US stock markets responded positively to the latest retail sales figures, which exceeded analysts’ expectations. The data suggests robust consumer spending, a key driver of economic growth. This has instilled a sense of optimism among investors, leading to increased buying activity across various sectors.

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all registered gains following the report’s release. Retail stocks, in particular, saw significant increases, reflecting the direct impact of the positive sales data. Analysts are now reassessing their economic outlook for the coming months, with some suggesting a potential upward revision of growth forecasts.

However, some economists caution that it is too early to declare a definitive trend, emphasizing the need for continued monitoring of economic indicators. They also highlight potential inflationary pressures that could arise from sustained strong consumer demand. The market’s reaction in the coming weeks will likely depend on further economic data and the Federal Reserve’s policy decisions.