Larger-cap stocks led the day, including technology bellwethers IBM Corp. and Intel Corp., which benefited from the Gartner Inc. forecast. Traders attributed some of the momentum to the week’s slow start. The bond markets were closed yesterday for Veterans Day. Many investors were returning to the market after a long weekend, and with money to spend, said Brian G. Belski, fundamental market strategist at US Bancorp Piper Jaffray.

"Investors this year have conditioned themselves to buy the dip, and today they saw an opportunity," Belski said. "We’re in a little bit of a news vacuum ... so right now they’re going to react to any news blip at all."

The Dow ended the day up 111.04, or 1.1 percent, at 9,848.83.

The broader gauges also closed higher. The Nasdaq composite index closed up 42.36, or 2.2 percent, at 1,973.11. The Standard & Poor’s 500 index gained 11.96, or 1.1 percent, to close at 1,058.53.

The market appears to be in a "consolidation phase ... with shallow pullbacks met with buying" said Peter Cardillo, president and chief strategist of Global Partner Securities Inc.

"Once the consolidation phase is over I think the second leg of this bull run will commence," Cardillo said. "That will probably take us up to new highs by the end of the year."

Fueling today’s tech rally, research firm Gartner Inc. said it expects semiconductor sales to increase more than 20 percent next year. Chipmaker Intel rose 69 cents to close at $34.10. IBM Corp. rose $1.33 to $90.69.

Investors were also watching for results from chipmaker Applied Materials Inc., which was to report after the close. Computer manufacturer Dell Inc. was to report profits tomorrow.

Analysts say investors have been torn between booking gains and holding on to their investments in case the market moves significantly higher. Some still worry that strong earnings and economic data are already reflected in stock prices, leaving little room for growth in the months ahead.

Stocks declined during the past few sessions in the absence of economic news and as earnings season wound down. The Gartner forecast may have been the catalyst Wall Street was looking for to break out of its decline.

Another apparent trigger for today’s rally was Ford Motor Co., which shook off a credit rating downgrade by Standard & Poor’s Corp. Ford closed up 75 cents, or 6.1 percent, at $13.06, after stating that the downgrade doesn’t reflect the health of its business. S&P, citing poor profitability and cash flow, cut the car company’s rating to one notch above junk.

Merck & Co. rose 38 cents to close at $44.25 despite news it had scrapped a highly anticipated depression drug that failed to produce desired results in trials.