NEW YORK (CNNMoney.com) -- Stocks rose for the second straight session Tuesday, with the S&P 500 hitting a fresh five-and-a-half-year high and the Dow within reach of its all-time high, as investors celebrated a surprisingly strong read on consumer confidence.

The Dow Jones industrial average (up 74.45 to 11,650.26, Charts) climbed over 0.6 percent with an hour left in the session, putting it less than 75 points from its record close of 11,722.98 set Jan. 14, 2000.

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The broader Standard & Poor's 500 (up 8.47 to 1,334.84, Charts) index added 0.6 percent. On Monday it closed at 1,326.37, a fresh 2006 high and its highest since February 2001.

The Nasdaq composite (up 10.57 to 2,259.64, Charts) rose 0.5 after leading the rally in the previous session.

Stocks surged Monday on bets that the slowing economy, the recent drop in energy prices and the decline in bond yields mean the Federal Reserve won't lift interest rates again any time soon.

Earlier in the session, a strong read on September consumer confidence lent support. The index rose to 104.5 in the month, topping forecasts for it to rise to about 102.5 from an upwardly revised 100.2 in August.

The strong report was not a real surprise, considering that it covered a period when gasoline prices fell and stocks did well, said Jeff Kleintop, chief investment strategist at PNC Advisors.

What was notable about the report, Kleintop said, is that although it shows the consumer is feeling better, it doesn't suggest consumer spending is likely to ramp up enough to recharge the economy and force the Fed to raise rates again. Consumer spending fuels roughly two-thirds of the economy.

"The report was good news, showing the consumer is slowing, but not collapsing, even with the slowdown in the housing market," he said. "For now, it was what the stock market wanted to hear."

Although commodity prices fluctuated, the underlying stocks rallied, with investors buying recently battered oil, natural gas, aluminum, silver and gold stocks.

Among shares rising, Exxon Mobil (up $1.18 to $66.24, Charts) and Valero Energy (up $1.18 to $49.33, Charts) gained, while the Amex Oil (up 16.18 to 1,057.58, Charts) index added 1.5 percent.

A surge in gold stocks lifted the Amex Gold Bugs (up $7.75 to $299.00, Charts) index 2.6 percent.

Economically sensitive shares bounced back as well, including Dow components General Motors (up $1.21 to $31.81, Charts), Caterpillar (up $1.50 to $65.83, Charts) and Boeing (up $1.41 to $79.12, Charts).

Companies that benefit from lower fuel prices continued to rally, as they have the last week or so amid the decline in energy prices. A broad swath of railroads, truckers and airlines gained, boosting the Dow Jones Transportation (up 73.69 to 4,417.21, Charts) index 1.9 percent.

As is typical toward the end of a quarter, several companies issued quarterly earnings warnings.

Home builder Lennar said Tuesday morning that quarterly earnings fell from a year ago and warned that fourth-quarter earnings would miss analysts' estimates and its own earlier forecast.

Lennar (down $0.01 to $46.87, Charts) shares recovered from early losses to trade up slightly, as investors by now are getting used to bad news out of the home building sector.

After the close Monday, home improvement retailer Lowe's (up $0.00 to $28.84, Charts) said it will post full-year earnings at or near the low end of its previous guidance as a result of weaker than expected sales. Shares were modestly higher Tuesday.

Also late Monday, chipmaker PMC-Sierra (down $0.47 to $6.08, Charts) warned that third-quarter revenue will be in a range lower than it previously forecast due to weaker business activity. Shares slumped 7 percent.

Market breadth was positive. On the New York Stock Exchange, winners beat losers nearly two to one on volume of 1.3 billion shares. On the Nasdaq, advancers edged out decliners as 1.6 billion shares changed hands.

U.S. light crude oil for November delivery fell 37 cents to $61.08 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $1.20 to $597.10 an ounce.

Treasury prices slipped after rising for a week. The decline lifted the yield on the benchmark 10-year note to 4.58 percent from 4.54 percent late Monday. Bond prices and yields move in opposite directions.

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

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