NEW YORK (CNN/Money) - The Dow jumped back above the 9,000 level Tuesday, rising along with the broad market, as investors' sentiment remained positive despite a warning from telecom company Nokia.

The Dow Jones industrial average (up 74.89 to 9054.89, Charts) closed with a gain of 0.8 percent. The Nasdaq composite (up 23.70 to 1627.67, Charts) chalked up the biggest gain, rising 1.5 percent but still hanging below its highest point in a year, hit last week. Meanwhile, the S&P 500 index (up 8.91 to 984.84, Charts) rose 0.9 percent.

"I do think we're in a bull market, and I think it will continue," said Michael Carty, principal at New Millennium Advisors. "I suspect we're going to see the market look at bad news and basically rally away from it. ... But I think we are going to do some backing and filling."

Buyers trickled back into the market Tuesday despite a second warning in a row from a big telecom player.

Coming on the heels of a disappointing forecast by Motorola (MOT: down $0.08 to $8.60, Research, Estimates) Monday, Nokia (NOK: down $0.25 to $17.71, Research, Estimates), the world's largest maker of wireless handsets, said its second-quarter sales are likely to be at the low end of expectations. Just like Motorola, Nokia cited the weakening dollar and the outbreak of SARS for its troubles.

But, despite the telecom warnings and other mixed corporate news, investors refused to get caught up in negative sentiment. Instead, they held tight, continuing to buy on hopes of signs of an economic recovery in the second half of the year.

Investors likely will look for signs Wednesday in the Federal Reserve Board's Beige Book of where the economy, and interest rates, are heading. The report, due to be released at 2 p.m. ET, is essentially a snapshot of where the economy stands in the agency's 12 districts around the nation – and sometimes provides an indication of the Fed's next move.

Though Monday's Motorola warning was enough to bring sellers into the broader market, Nokia's trimmed forecast Tuesday only affected its stock and those of its closest competitors. Nokia shed 1.4 percent and Motorola was down 1 percent. Ericsson (ERICY: up $1.02 to $11.35, Research, Estimates), however, climbed almost 8 percent.

While the broader market showed strength against the weak telecom news, traders said they continued to look for a pullback after a more than two-month-long rally. The major indexes lost ground Monday but they have seen significant gains in the past two weeks.

"I think the market is generally overbought, and we need a bit of a correction," said Tom Schrader, head of listed trading at Legg Mason.

Schrader also said the second of two days of sunshine after weeks of rain in the Northeast has a lot of people taking the day off, leading to lower volume.

Market breadth was positive. More than two stocks rose for every one that fell on the New York Stock Exchange, on volume of 1.3 billion shares. On the Nasdaq, the advance/decline ratio stood at about two to one as 1.8 billion shares changed hands.

Meanwhile, Boeing and some drugmakers helped underscore the indexes' gains.

Boeing (BA: up $1.14 to $34.31, Research, Estimates), up 3.4 percent, benefited from an upgrade by Banc of America Securities to "buy" from "neutral. " The firm also raised its price target on Boeing's stock, citing better business trends.

Geron (GERN: up $1.02 to $7.98, Research, Estimates) was another leading gainer, jumping 14.7 percent after it received a U.S. patent for the engineering of some stem cells which it said could eventually lead to treatments for heart disease, cancer, spinal cord injury, Parkinson's disease and diabetes. Other drug stocks received a boost from the news as well, with StemCells (STEM: up $0.09 to $2.25, Research, Estimates) rising 4.2 percent.

Shares of business software maker Siebel (SEBL: up $1.06 to $11.70, Research, Estimates) helped techs higher after the Wall Street Journal reported that speculation is building that the company could be a takeover target, after last week's unsolicited bid for PeopleSoft (PSFT: unchanged at $17.90, Research, Estimates) by Oracle (ORCL: up $0.16 to $13.02, Research, Estimates). Shares of Siebel rose 8.8 percent.

Banc of America was not as generous with semiconductor-equipment stocks, downgrading several of them. Novellus (NVLS: down $0.26 to $37.34, Research, Estimates) slipped about 1 percent, and Lam Research (LRCX: down $0.29 to $17.95, Research, Estimates) lost 1.6 percent on the downgrades. The chip-equipment makers also lost ground after an earthquake hit Taiwan, where many chip labs are located.

Despite the stock market's return to strength, bonds rallied as well, with the 10-year Treasury note yield dropping to 3.19 percent as its price rose 22/32 of a point. The dollar also gained some ground against the euro but slipped versus the yen.

The price of light crude oil for July delivery rose 28 cents to $31.73 a barrel in New York. Gold tumbled $9.80 to $352.80 an ounce in New York.

Stock markets in Europe closed the day mixed. Asian markets finished their overnight trading session mostly lower.