NEW YORK (CNNMoney.com) -- Stocks surged Tuesday afternoon amid falling oil prices and a slew of corporate news, including an upbeat earnings report from Goldman Sachs and boardroom shakeups at Hewlett-Packard and Bristol-Myers Squibb.

The Nasdaq composite (up 26.84 to 2,200.09, Charts) rose 1.2 percent with roughly 2 hours left in the session. The Dow Jones industrial average (up 85.24 to 11,482.08, Charts) and the broader Standard & Poor's 500 (up 9.35 to 1,308.89, Charts) index both increased by about 0.7 percent.

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After a moderate start to the session, the major gauges picked up the pace by late morning and kept going from there, with the tech-fueled Nasdaq leading the way.

"I think positive corporate news today along with the recent decline in oil prices and bond yields over the last few days has helped provide a spark for the market," said Michael Sheldon, chief market strategist at Spencer Clarke.

Brokerages, restaurants, automakers and home builder stocks were among the best performing sectors Tuesday, a change from recent weeks when these sectors came under pressure due to worries about a slowing economy.

"We've seen a dramatic rotation over the last few days, as money has been flowing out of energy stocks, and to a lesser degree, utility stocks, and into some of the more beaten down groups, including the cyclicals," Sheldon added, referring to companies whose fortunes are more tied to economic cycles.

Falling oil prices helped sentiment, as did the news that Hewlett-Packard's chairwoman will step down and that Bristol-Myers Squibb's CEO has been fired. Also helping: Goldman Sachs and Best Buy reported improved earnings.

On the economic front, investors took in news that the trade gap hit a record in July, amid a jump in oil prices during the month.

The report failed to rattle stock investors.

Hewlett-Packard said Tuesday that embattled chairwoman Patricia Dunn will leave the company early next year after news emerged that an internal probe of HP's board may have used illegal methods to spy on directors and some journalists. On Tuesday, the Justice Department said it was investigating the matter.

Dunn will be replaced by Mark Hurd, the company's chief executive officer and president. HP (up $0.88 to $37.24, Charts) shares gained 2.3 percent.

Bristol-Myers Squibb (up $0.67 to $24.06, Charts) gained 2.6 percent after firing its CEO and general counsel. (Full story).

Goldman Sachs (up $6.40 to $157.40, Charts) gained 3.6 percent after reporting higher-than-expected quarterly earnings and setting a new 60 million share buyback plan.

That gave a boost to other financial stocks, sending the Amex Broker/Dealer Securities (Charts) index up more than 2.6 percent.

Best Buy (up $3.71 to $51.48, Charts) reported quarterly earnings that rose from a year earlier and topped estimates. Shares gained 7 percent.

Lucent Technologies (up $0.06 to $2.35, Charts) rose over 2 percent in active New York Stock Exchange trade after the telecom gear maker said it was buying software maker Mobilitec for an undisclosed sum. Lucent is being bought by French telecom Alcatel (up $0.33 to $12.18, Charts).

Lucent was one of many stocks boosting the Nasdaq Telecommunications (Charts) index by 2.3 percent.

Apple (down $0.39 to $72.11, Charts) shares inched lower after the company announced that it will now offer Disney movies for download through its iTunes store. Amazon.com (up $0.95 to $31.74, Charts) announced a movie download service last week.

Dow 30 stock McDonald's (up $0.88 to $38.00, Charts) gained 2.3 percent on news that August sales at stores open a year or more rose a bigger-than-expected 6 percent.

McDonald's was among the stocks lifting the Dow industrials. In total, 23 out of 30 issues rose, including General Motors (up $1.20 to $33.04, Charts), Home Depot (up $1.40 to $36.46, Charts) and Alcoa (up $0.28 to $27.44, Charts).

Alcoa joined a resurgence in the metals and mining sector, which was hit hard Monday. A variety of gold and silver stocks rose too.

Elsewhere, home-building stocks bounced, lifting the Philly Housing sector (Charts) index 3.5 percent.

Among the movers, Toll Brothers (up $1.28 to $27.90, Charts) gained almost 5 percent, D.R. Horton (up $1.50 to $23.85, Charts) gained over 6 percent and MDC Holdings (up $3.10 to $44.27, Charts) gained 7.4 percent.

Market breadth was positive. On the New York Stock Exchange, winners beat losers eight to three on volume of 1.05 billion shares. On the Nasdaq, advancers topped decliners by more than two to one as 1.19 billion shares changed hands.

U.S. light crude oil for October delivery fell $1.11 to $64.50 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery reversed course, turning lower, falling $2.80 to $594.50 an ounce, after slumping $20 on Monday.

Treasury prices reversed course, turning higher, with the yield on the 10-year note falling to 4.78 percent from around 4.80 percent late Monday. Bond prices and yields move in opposite directions.

In currency trading, the dollar rose versus the euro and the yen.

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