Wall Street kicked off the third quarter with a sharp advance Monday as mild manufacturing and construction data lifted hopes about interest rates and energized investors in light pre-holiday trade.

Stocks saw a solid early start on news of a possible alliance between General Motors Corp. and Nissan Motor Co., although Dow Jones industrial GM slumped ahead of its June sales results. Meanwhile, takeover speculation at Alcoa Inc. left the aluminum maker among the Dow’s biggest gainers.

But with many traders out of the office ahead of Independence Day, analysts said the light trading volume likely exaggerated stocks’ gains. The stock markets closed at noon Monday and will be closed today.