NEW YORK (CNNMoney.com) -- Stocks rose for the second straight session Tuesday, with the Standard & Poor's 500 index hitting a fresh five-and-a-half-year high and the Dow Jones industrial average reaching its highest level in more than six years, as investors celebrated a surprisingly strong consumer confidence report.

The Dow (up 93.58 to 11,669.39, Charts) climbed over 0.8 percent, putting it at its highest level in six and a half years and nearly 50 points from its all-time high of 11,722.98 set Jan. 14, 2000.

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The broader S&P 500 (up 9.97 to 1,336.34, Charts) added 0.75 percent and knocked out its high from the previous session, closing at its best point since Feb. 2001.

The Nasdaq composite (up 12.27 to 2,261.34, Charts) rose 0.55 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.

"What we have is a new high, solid earnings, lower interest rates and lower oil," said Tony Dwyer, equity market strategist at FTN Midwest Research. "Those are good things for the market and investors are finally responding."

On deck, August's report on new home sales is due Wednesday and personal income and personal spending reports are due Friday.

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

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 109.23 to 4,452.75, Charts) index 2.5 percent.

Among shares rising, Exxon Mobil (up $1.37 to $66.43, Charts) and Valero Energy (up $1.48 to $49.63, Charts) gained, while the Amex Oil (up 21.32 to 1,062.72, Charts) index added 1.9 percent.

A surge in gold stocks lifted the Amex Gold Bugs (up $8.75 to $300.00, Charts) index 2.8 percent.

Economically sensitive shares bounced back as well, including Dow components General Motors (up $0.81 to $31.41, Charts), Caterpillar (up $1.57 to $65.90, Charts) and Boeing (up $1.29 to $79.00, Charts).

Of the 30 stocks in the Dow, 24 rose and six fell.

After the close Tuesday, Jabil Circuit (down $0.96 to $27.89, Charts) said its fourth-quarter revenue increased 50 percent, sending shares of the electronics contract manufacturer up 6 percent on Inet.

But shares of Red Hat (up $0.25 to $26.32, Charts) slid 7 percent in extended trade after the distributor of open-source Linux software said second-quarter profit fell.

Also after the bell, shares of Paychex (up $0.76 to $37.08, Charts) slumped on Inet after the payroll processor said income rose 17 percent, but revenue fell short of expectations.

And retailer Dress Barn (up $1.12 to $21.80, Charts) said its earnings fell from the year-ago period, but came in above forecasts sending shares higher in extended trade.

Market breadth was positive. On the New York Stock Exchange, winners beat losers nearly two to one on volume of 1.7 billion shares. On the Nasdaq, advancers edged out decliners as 2.1 billion shares changed hands.

U.S. light crude oil for November delivery fell 44 cents to $61.01 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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