By Martin Crutsinger

The Associated Press

WASHINGTON — Evidence that housing is poised to improve and optimism about the results of banking “stress tests” raised hopes Monday that the recession is easing and helped lift a key stock market measure into the black for the year.

Construction spending and pending home sales both fared better than expected in March, and private economists saw the reports as further evidence that the overall economy is stabilizing after its bleakest stretch in a half-century. If so, the economy might be able to mount a recovery in the second half of 2009.

Wall Street took the same view. All the major stock indexes jumped more than 2 percent. The Standard & Poor’s 500 rose 3.39 percent, showing a gain for 2009.

“Investors believe the worst of the downturn is behind us,” said Mark Zandi, chief economist at Moody’s Economy.com. “The economy is still in a recession. But the rate of decline is moderating, and a bottom for the housing market and the overall economy are coming into view.”

To read the entire article, click here.