Wall Street rallied Tuesday, the first day of the second quarter, on news that two banks slammed by the credit crisis are working to raise cash and that U.S. manufacturing is faring better than expected. The Dow Jones industrial average soared more than 220 points.

Investors were pleased to hear that Swiss bank UBS AG said it will issue up to $15 billion in new stock and that its chairman, Marcel Ospel, had quit. Investors chose to look past the bank's announcement that it will take a fresh $19 billion write-down due to additional declines in the value of its mortgage assets and other credit instruments, following an $18 billion write-down last year.

UBS's decision to issue new stock arrived on the heels of a similar announcement by the U.S. investment bank Lehman Brothers Holdings Inc. late Monday. Lehman said it would sell 3 million convertible preferred shares due to "investor interest."

Shares of both UBS and Lehman surged along with the rest of the financial sector, as the news buttressed the view that financial services companies are taking aggressive action to improve their capital bases.

Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted.

The Dow Jones industrial average rose 224.15, or 1.83 percent, to 12,487.04.

Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 23.30, or 1.76 percent, to 1,346.00, and the Nasdaq composite index rose 43.12, or 1.89 percent, to 2,322.22.