Which naval battle established the U. S. Navy as a strong fighting force?

The Battle of Manila Bay of May 1, 1898.

Explanation:

It was one the first battle of the Spanish-American War. The US Asiatic Squadron of Commodore George Dewey destroyed the Spanish Pacific Fleet in just two hours in the Manila Bay. The US subsequently occupied the Filippines.  The US won the war and put an end to Spanish colonial rule in the Americas.

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