Biggest monthly jump in consumer confidence

U.S. stocks climbed more than 2% on Tuesday as data showing the biggest monthly jump in consumer confidence in six years lifted hopes of an economic rebound. Apple's shares closed nearly 7% higher and helped the NASDAQ higher after a broker said the iPhone will drive strong earnings growth over the next two years and raised its price target on the stock.

An index of U.S. consumer confidence surged in May, strongly topping expectations as it registered the biggest monthly jump since April 2003, according to the Conference Board, an industry group. The index jumped to 54.9 in May from a revised 40.8 in April.

Oil hit a fresh six-month high on Tuesday, bolstered by U.S. consumer confidence data and comments from OPEC kingpin Saudi Arabia that prices may continue to rise. Saudi Arabian Oil Minister Ali al-Naimi told the press ahead of Thursday's OPEC meeting he hoped oil prices would hit $75 a barrel between the third and fourth quarters of this year. U.S. crude oil rose 78cents to settle at $62.45 a barrel.

General Motors Corp has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days.