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NEW YORK (CNNMoney.com) -- Oil prices jumped back above $52 a barrel, in tandem with a rally in equities Thursday, as signs of an economic recovery seem to appear on the horizon.

U.S. crude for May delivery ended the day up $4.25 at $52.64 a barrel in New York, the highest settle price since last week Thursday.

The Dow Jones industrial average was up more than 3.6% as oil trading closed in New York, and topped 8,000 points during the session for the first time since February.

Stocks continued a rally that began late Wednesday, fueled by reports of improved manufacturing and housing. Markets in Asia and Europe also rallied.

Investors have been looking to equities as a gauge of economic confidence and future crude demand.

"I think people are starting to get the sense that things are starting to level off a little bit," said Tom Orr, head of research for brokerage Weeden & Co.

Oil investors were paying particular attention to rising transportation stocks, due to their reliance on petroleum-based fuels, according to Orr.

The Dow Jones transportation average was up 8.4% in afternoon trading. Shares of shipper FedEx (FDX, Fortune 500) and railroad Union Pacific (UNP, Fortune 500) were up more than 9.5%, and airline Continental (CAL, Fortune 500) rallied more than 12%.

Investors also cheered a potential loosening of an accounting rule that dictates how banks value assets, which many have blamed for aggravating the financial crisis. The new rule could boost bank earnings by allowing them to calculate the value of bad assets differently.

"It gives these financial institutions some breathing room," said Orr.

Dollar: Oil prices rose as investors turned away from the U.S. dollar, in favor of the greater returns in the equity market. The falling dollar buoyed crude oil, which is traded in dollars, according to Mark Waggoner, president of commodities brokerage Excel Futures.

"If the value of our currency goes down, other countries can purchase our goods and services for less of their currency. So it creates demand," said Waggoner.

The 15-nation euro was trading up 1.5% against the dollar during Thursday trading, and the British pound soared nearly 1.7%.

Gasoline: Meanwhile the price of gasoline at the pump fell 0.2 cent to a national average of $2.045 a gallon from Wednesday, according to a survey from motorist group AAA.