NEW YORK (Bloomberg) - US stocks rallied, sending the Standard & Poor’s 500 Index to the biggest advance in three months, amid improving global economic data and on investor speculation of a larger European financial rescue.

Schlumberger Ltd. and Dow Chemical Co. climbed more than 3.9 percent as commodity prices gained. United Technologies Corp. and General Electric Co. rose at least 3 percent as Deutsche Bank AG said they may benefit from Airbus SAS’s plan to develop A320 aircrafts with new engines. Motorola Inc. jumped 4.5 percent after detailing plans to split into two companies in January. Microsoft Corp. increased 3.1 percent after forecasting 2011 may be “biggest year ever” for its Xbox division.

The S&P 500 added 2.2 percent to 1,206.07 at 4pm in New York. Yesterday’s gain followed rallies of three percent on September 1 and 2.2 percent on August 2, meaning the three biggest advances since July occurred on the first trading day of a month, Bloomberg data show. The Dow Jones Industrial Average rose 249.76 points, or 2.3 percent, to 11,255.78.

“The recovery is unfolding,” said John Praveen, the Newark, New Jersey-based chief investment strategist at Prudential International Investments Advisers LLC, which oversees $690 billion. “The quality of the economic data has been improving. There’s a strong bid for commodities as China is growing at a strong pace. There’s some easing of concerns about Europe. Those are all catalysts for a stock rally.”

The Dow average has rallied in December more than in any other month over the last century, according to data compiled by Bespoke Investment Group. On average, the 30-stock gauge has risen 1.3 percent in the month during the past 100 years, while gaining 1.5 percent and 1.7 percent over the last 50 and 20 years, respectively, the data show.

US stocks followed Asian and European stocks higher earlier after China’s logistics federation reported that manufacturing grew at a faster pace for a fourth straight month in November. Europe’s manufacturing industries expanded at the fastest pace in four months in November, Markit Economics said.

Equities extended gains after an ADP Employer Services report showed that employment increased by 93,000, the most since November 2007, after a revised 82,000 rise in October that was almost double the initial estimate. The median projection of economists in a Bloomberg survey called for a 70,000 gain last month. The data bolstered optimism in the job market two days before the government’s employment report.

“It’s a relief rally,” said Burt White, who helps oversee $284 billion as chief investment officer at LPL Financial Corp. in Boston. “The ADP number bodes well for the jobs report we’re getting on Friday. There’s strength out of China, more clarity coming out of Europe. We see a reacceleration from the soft spot we were at earlier this year.”

Another report showed that US manufacturing expanded for a 16th consecutive month in November. The Institute for Supply Management’s factory index was little changed at 56.6 from 56.9 in October. The figure compared with a median economist estimate of 56.5 in a Bloomberg News survey.

The Fed’s report on regional activity, known as the Beige Book, said the economy gained strength across much of the US as hiring improved, manufacturing expanded and retailers anticipated a stronger holiday shopping season. The anecdotal information will help policy makers frame the discussion of the economy when they next meet on December 14.

The Morgan Stanley Cyclical Index of economically sensitive stocks rose 3.1 percent, the most in three months, as all 30 of its companies rallied. Caterpillar Inc., the world’s largest maker of construction and mining equipment, gained 3.4 percent to $87.45. FedEx Corp., the second-largest US package-shipping company, jumped 3.2 percent to $93.99.

Indexes of energy and raw-materials producers in the S&P 500 rallied at least 2.7 percent as the US dollar fell, sending commodities prices higher. The Thomson Reuters/CRB Commodity Index of 19 raw materials advanced 2.5 percent as the Dollar Index, which gauges the currency against six major counterparts, slumped 0.6 percent to snap a three-day rally.

Schlumberger, the largest oilfield services provider, added 4.5 percent to $80.85. Dow Chemical, the world’s second-biggest chemical company, climbed four percent to $32.42.

Deere & Co. gained 1.9 percent to $76.14. The world’s largest farm-equipment maker increased its dividend by five cents, or 17 percent, to 35 cents a share. That beat the 30-cent dividend projection from Bloomberg.

Stocks extended gains today as Reuters, citing an unnamed official, reported that the US would be ready to support an extension of the European Financial Stability Facility, the fund used to bail out Greece and Ireland, by having the International Monetary Fund contribute more money. An official in Washington later told Bloomberg News that the US is not discussing an extra commitment of money from the IMF.