Wall Street had an auspicious start to December on Thursday, with stocks soaring as investors welcomed inflation-friendly economic data and hoped the November rally would continue through year-end.
The Dow rose 106.70, or 0.99 percent, to 10,912.57. The move higher nearly reversed the market's previous three days of losses.
The Standard & Poor's 500-stock index added 15.19, or 1.22 percent, to 1264.67, and the Nasdaq composite index surged 34.35, or 1.54 percent, to 2267.17.
Investors were heartened by a finding in the Commerce Department's personal income and spending report showing scant inflationary pressures. And with incomes rising 0.4 percent and spending rising 0.2 percent, the market felt consumers could be well positioned for a strong holiday shopping season, while lower prices could bring an end to the Federal Reserve's interest rate hikes.
The news was enough to overcome some mixed retail sales reports.
It also brought newfound confidence to investors, who piled into small-cap, riskier stocks as enthusiasm over a stop to interest rate increases grew.
Wal-Mart Stores fell 53 cents, to $48.03, as November sales at stores open at least a year, known as same-store sales, rose 4.3 percent, as expected.
Target's sales were slightly below Wall Street estimates, but its stock gained 29 cents, to $53.80, on a bullish holiday sales forecast.
Gap saw a 4 percent drop in November same-store sales, though its shares edged 2 cents higher, to $17.40.
Abercrombie & Fitch rose 42 cents, to $61.74, after reporting a 23 percent jump in its monthly sales.
Warner Music Group narrowed its quarterly loss from a year ago and posted a modest gain after accounting for one-time costs. Warner Music climbed $1, to $19.05.
Knight Ridder jumped 53 cents, to $60.93, after the Wall Street Journal reported that three private buyout firms were considering making a bid for the media company.
New York Stock Exchange composite index rose 111.26, to 7756.54.
American Stock Exchange index rose 19.68, to 1709.48.
Russell 2000 index of smaller-company stocks rose 12.92, to 690.21.
NYSE: 2.63 billion shares, up from 2.41 billion on Wednesday. Advancers outnumbered decliners
3 to 1.
Nasdaq: 2.04 billion shares, up from 1.92 billion. Advancers outnumbered decliners 7 to 3.
Crude oil for January delivery: $58.47, up $1.15.
Gold for current delivery: $502.50 a troy ounce, up from $494.60 on Wednesday.