U.S. stocks rose as residents of Iraq's second-largest city, Basra, reportedly rose up against Saddam Hussein's military and President Bush said coalition forces are on a "steady advance" to Baghdad.
The Dow Jones industrial average advanced 65.55, or 0.8 percent, to 8280.23, and the Standard & Poor's 500-stock index rose 10.51, or 1.2 percent, to 874.74. Both the S&P 500 and the Dow gained for the ninth day in 10.
The Nasdaq composite index rose 21.23, or 1.6 percent, to 1391.01.
Indexes, which bounced between gains and losses during the first hour of trading, turned higher after Bush said the United States and Britain "will prevail" in ousting Hussein. Shares extended gains as the British Broadcasting Corp. said the uprising against the Iraqi military broke out in Basra.
Stocks pared gains after the Senate voted to reduce Bush's proposed 10-year tax cut to $350 billion from $726 billion.
The S&P 500 media index jumped 2.1 percent. AOL Time Warner, the world's biggest media company, climbed 42 cents, to $11.37. Comcast, the biggest U.S. cable television operator, rose 69 cents, to $29.31.
Walt Disney Co. advanced 29 cents, to $17.69, and Viacom climbed 54 cents, to $39.91.
Airline shares rallied after Senate Majority Leader Bill Frist said the industry will get aid from Congress. Carriers, including AMR's American Airlines, are seeking $4 billion to cover added losses from the war. U.S. airlines lost a record $11.3 billion last year and may have $10.7 billion in losses this year, according to the Air Transport Association, a trade group.
AMR rose 17 cents, to $2.25; Northwest Airlines gained 72 cents, to $8.08; and Delta Air Lines climbed 29 cents, to $9.81.
UnumProvident rose $1.58, to $9.91. The biggest U.S. disability insurer resolved a regulatory review of its junk-bond holdings, clearing the way for the Securities and Exchange Commission to approve the company's request to sell shares and shore up its capital.
Symantec, the world's largest maker of anti-virus software, advanced $1.66, to $40.75. The company will replace Household International in the S&P 500.
American Express dropped $1.09, to $35.26. The largest U.S. travel agent and fourth-biggest U.S. credit card company may be hurt as the war in Iraq prompts business to slow spending and travel, Merrill Lynch analysts Michael Hughes and Dan Rosenbaum wrote in a note to clients. They reduced their 2003 profit forecast on American Express, to $2.22 a share from $2.26.
* The New York Stock Exchange composite index rose 60.43, to 4862.01; the American Stock Exchange index rose 3.33, to 820.78; and the Russell 2000 index of smaller-company stocks rose 4.54, to 371.79.
* Advancing issues outnumbered declining ones by 13 to 5 on the NYSE, where trading volume rose to 1.33 billion shares, from 1.28 billion on Monday. On the Nasdaq Stock Market, advancers outnumbered decliners by 2 to 1 and volume totaled 1.4 billion, up from 1.31 billion.
* The price of the Treasury's 10-year note rose $1.88 per $1,000 invested, and its yield fell to 3.94 percent, from 3.97 percent on Monday.
* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 120.15 yen, down from 120.73 late Monday, and a euro bought $1.0654, up from $1.0644.
* Light, sweet crude oil for May delivery settled at $27.97, down 69 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $328.40 a troy ounce, from $329.50 on Monday, on the New York Mercantile Exchange's Commodity Exchange.