Stocks pared gains in the last half hour of the session but remained significantly higher Wednesday as the dollar slumped, gold soared, and a series of better-than-expected earnings reports gave investors confidence in the economy's health.
The Dow Jones Industrial Average rose 75.68 points, or 0.7 percent, to close at 11,096.08, a new five-month high. The Dow had risen as much as 134 points earlier in the session.
Cisco , Hewlett-Packard and Microsoft led the blue-chip index, while Intel and Bank of America fell.
The S&P 500 rose 8.33 points, or 0.7 percent, to close at 1,178.10, while the Nasdaq rose 23.31 points, or 1 percent, to close at 2,441.23. Both indexes also reached new five-month highs.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 19.
Most of the S&P 500 key sectors were higher, led by materials, industrials and energy, although telecom and financials slipped in the last half hour of trading.
The upbeat tone to the market came on the heels of better-than-expected earnings reports from Intel, CSX, and JPMorgan. Also playing a role are increased expectations that the Federal Reserve will step into to boost the economyafter the release of minutes from the central bank's September meeting.
"I know I was pretty cautious on earnings," said Jack Ablin, chief investment officer at Harris Private Bank. "I wanted to get into the market, but I was also a little bit concerned about how these earnings would play out."
The fact that earnings have started to come in better than estimates Ablin had considered too optimistic is a positive sign that gives investors a reason to buy.
"Stocks are cheap," Ablin added, especially with the prospect of another recession seeming less likely.
On the tech front, Microsoft shares rose after news on Wednesday that the company has expanded its search partnership with Facebook.
Intel slipped even after the tech giant released strong results, powered by demand from emerging markets and corporations. Analysts had mixed reviews: FBR raised its price target to $27 from $26, while S&P equity lowered its price target to $22 from $25.
Oracle and Microsoft advanced after Evercore Partners started coverage of the tech giants with an "equal-weight" and "overperform" ratings, respectively.
Shares of Apple topped $300 for the first time. The iPod maker's stock price had been trending higher ahead of its earnings release next week. In addition, the firm is scheduled to unveil the next version of its operating system at an event next week, CNBC reported Wednesday.
And for those keeping tab at home, Apple has the 4th highest share price in the S&P 500, followed by Google, Washington Post and Priceline .
Search engine giant Google rose, while chipmaker AMD fell ahead of their earnings due Thursday after the bell.
CSX continued to climb after reporting better-than-expected profits due to rising demand for freight.
Rival railroad stocks also rose, including Kansas City Southern , Union Pacific and Norfolk Southern . The Dow Jones Transportation Indexalso rose.
Costco shares were slightly higher despite a rating downgrade to "neutral" from "buy" from UBS. The brokerage said it continues to believe Costco has a strong business model, but after a 15 percent gain in the stock, it is fairly valued.
Wal-Mart, meanwhile, slipped after CEO Mike Duke said he expects higher sales in the fourth quarteras the discount retailer shifts back to an "everyday low price strategy." Duke spoke at Wal-Mart's annual meeting with analysts and investors.
Chevron fell slightly after the oil giant warned that its quarterly earnings could belower than those of its second quarter.
Western Refining surged almost 15 percent after Morgan Stanley upgraded the independent oil refiner to "outperform."
And elsewhere in energy news, Williams soared after the natural gas firm announced Alan Armstrong will become CEO at the end of the year after CEO Steve Malcolm retires.
Oil prices, rose for a third straight day near $83 a barrel as the dollar weakenedon reinforced expectations of more monetary easing by the U.S. central bank and on news that China's crude imports jumped in September. Gold surged to a record high near $1,375 an ouncewhile silver hit a 30-year peak.
The CRB index, the commodity price index, is at a 2-year high.