Falling oil prices and an unexpected rise in pending home sales ignited a stock-market rally that carried the Dow Jones Industrial Average to a five-week high.

Home Depot Inc., Alcoa Inc., and DuPont Co. helped the Dow recover almost all of its losses from the February 27 global rout, and led the Standard & Poor’s 500 Index to its second straight gain.

Google Inc.’s biggest jump since March 6 gave the Nasdaq Composite Index its fourth consecutive advance.

The National Association of Realtors’ index of signed purchase agreements climbed 0.7% last month, allaying concern falling real-estate prices will curb spending. A separate report showed retail sales last week rose the most in two months, while the biggest drop in oil since March 9 bolstered expectations the economy will grow without fueling inflation.

“If we see strength in the economy, that is certainly good for stocks,” the president of Wilmington Trust Investment Management in New York, Neil Wolfson, said. “We’re seeing some stabilization in the housing market,” while a decline in oil “allows consumers to spend more.”

The Dow industrials added 128, or 1%, to 12,510.30. The gauge is now 1% shy of recouping all of its decline from the global equity selloff that began February 27.

The S&P 500 rose 13.22, or 0.9%, to 1437.77. The Nasdaq increased 28.07, or 1.2%, to 2450.33.

Crude oil futures fell 2% to $64.64 a barrel in New York. Oil has pulled back after reaching a six-month high last week.

Prime Minister Blair said Britain will try to negotiate with Iran over the release of 15 captive British naval personnel, easing concern that oil shipments will be disrupted.