Investors were heartened by stronger-than-expected October retail sales, and by earnings from Target and other merchants that beat forecasts. Analysts said the market also drew some strength from Iraq's agreement yesterday to weapons inspections, which could avert a war.

The Dow closed up 143.64, or 1.7 percent, at 8,542.13, adding to yesterday's 12-point gain, according to preliminary calculations. It was the Dow's best one-day advance in nearly a month ­ since Oct. 21, when it rose 215.84.

The broader market posted its best gains in a month. The Nasdaq climbed 50.18, or 3.7 percent, its best one-day win since Oct. 15.

The Standard & Poor's 500 index advanced 21.74, to 904.27. It was also the S&P's best one-day gain since Oct. 15.

Investors were buying stocks with a zeal lacking in recent sessions. "The market has been boosted by the good retail sales numbers and the fact that the imminence of U.S. military action against Iraq has been delayed. Those two events have been a magnet for money," said Alan Ackerman, executive vice president at Fahnstock & Co.

Today's gains followed news that sales at the nation's retailers were flat in October, better than the 0.2 percent decline analysts had expected. It was also an improvement over a 1.3 percent drop in sales for September.

Retailing stocks were strong. Target surged $3.46, or 11.5 percent, to $33.49 on third-quarter earnings that were 2 cents a share higher than anticipated.

The positive retail news was particularly encouraging to investors, who know that consumer spending represents economic vitality. "People are looking for reasons to buy stocks, rather than sell them. When investor psychology changes, that is what happens. Two months ago nobody wanted to buy," said Michael Murphy, head trader for Wachovia Securities.

While the market's advance was widespread across sectors, analysts were most encouraged by the tech sector's awesome gains, which came despite disappointing news from Applied Materials. The chip equipment maker issued a profit warning for its first quarter late yesterday. Still, Applied Materials managed to rise $1.06 to $15.76 in yesterday's trading.

"Technology is fairly valued. And, I think the market is telling you that the economy is starting to shape up. With that in mind, you want to own these stocks," Murphy said.

There were few losers; among them was Honeywell, dropping $2.09 to $23.16 on concerns about its pension funding. Honeywell said in a government filing that it expects 2003 pension expenses to run $235 million to $335 million.