New York ? Wall Street notched its third straight month of gains Friday — a feat not seen in nearly two years — after investors cheered a pair of reports showing a rise in consumer sentiment and Midwest manufacturing.

“We have more positive economic data that’s got investors heartened the economy is continuing to improve,” said Stephen Massocca, president of Pacific Growth Equities. “Investors are pretty optimistic.”

The Dow Jones industrial average closed up 139.08, or 1.6 percent, at 8,850.26. That reversed a decline in the Dow Thursday, when it lost nearly 82 points, halting a five-day rally. It also was the highest level seen since Dec. 2, 2002, when the blue chips finished at 8,862.57.

The broader market also finished sharply higher.

The Nasdaq composite index rose 20.96, or 1.3 percent, to 1,595.91. That was the best level since May 31, 2002, when the tech-focused index closed at 1,615.73.

The Standard & Poor’s 500 index gained 13.95, or 1.5 percent, to 963.59. It was the highest close since July 8, 2002, when the index stood at 976.98.

The three gauges also posted a third straight winning month, an achievement that hasn’t happened since October-December 2001. In May, the Dow gained 4.4 percent, the Nasdaq advanced 9 percent and the S&P rose 5.1 percent.

For the week, the main gauges also finished higher, with the Dow up 2.9 percent, the Nasdaq 5.7 percent higher, and the S&P up 3.3 percent.

Friday, the University of Michigan reported that its consumer sentiment index rose in May to 92.1 percent, according to Dow Jones Newswires. That is up from 86.0 percent in April, although it is lower than both a mid-month reading and the forecasts of analysts.

Meanwhile, the Purchasing Management Association of Chicago said its index of business activity rose to 52.2 in May, indicating manufacturing growth in the Midwest. Analysts said that could foreshadow an increase in the national manufacturing number, to be reported Monday by the Institute for Supply Management.