"It is time for a rebound. It is encouraging that this is happening in August at a time when there are a lot of people out of town and not putting in their trades," said Susan L. Malley, chief investment officer for Malley Associates Capital Management. "I do think that this firmness, even though it is on light volume, is a sign that the bottom is in."

The Dow closed up 96.41, or 1.1 percent, at 9,053.64, according to preliminary calculations. Building on yesterday's 85-point gain, the Dow closed above 9,000 for the first time since July 9, when it stood at 9,096.09.

The Dow has recovered 1,351.30 points since its July 23 low of 7,702.34.

The broader markets were also higher. The Nasdaq composite index rose 13.69, or 1 percent, to 1,422.94, having closed above 1,400 yesterday for the first time since July 8. The Standard & Poor's 500 index advanced 13.34, or 1.4 percent, to 962.70.

Investors are feeling more confident about stocks, as seen last week when all the indexes scored their second straight weekly gains, a feat last seen in the two-week period ending March 8.

Wall Street also owes its gains to a welcome break from major earnings shortfalls, disappointing economic reports and bookkeeping scandals.

"The lack of bad news over the past few weeks has been encouraging," said Thomas F. Lydon Jr., president of Global Trends Investments in Newport Beach, Calif. "People are taking a deep breath and looking for opportunities while they are still around."

Wall Street's gains were spread across a broad range of sectors, which analysts attributed to prices having fallen to attractive levels.

Advancing issues outnumbered decliners slightly more than 2 to 1 on the New York Stock Exchange, where volume was light.

The Russell 2000 index, which tracks smaller company stocks, rose 2.88, or 0.7 percent, to 409.67.