NEW YORK (CNNMoney.com) -- The Dow Jones industrial average rose early Tuesday afternoon, again making a stab at taking out its all-time record, thanks to a slide in oil prices which pushed crude to a more than 7-month low.

However, the slide in oil prices cut into energy stocks, sending one of the best performing sectors of the last few years deep into the red.

The Dow industrials (up 37.78 to 11,708.13, Charts) added 0.5 percent 2-1/2 hours into the session, briefly topping its record closing high.

On Monday, the blue-chip indicator made its third attempt in the last week to close above its record high, but failed to do so by the close. The Dow's all-time closing high is 11,722.98, hit on Jan. 14, 2006. The all-time intraday high is 11,750.28, also from Jan. 14, 2000.

The S&P 500 (up 1.01 to 1,332.33, Charts) index added 0.4 percent Tuesday. The broad index topped out at a 5-1/2 year high last Thursday and has struggled since then.

The Nasdaq composite (down 0.10 to 2,237.50, Charts) added 0.3 percent.

A selloff in tech and commodities stocks had weighed on the Nasdaq through the morning, keeping the broader market in check.

But the tone improved near midday, with investors betting that the steep decline in oil prices means that inflationary pressures are diminishing and the economy is likely headed for a slowdown, not a recession, as has been feared.

"Oil prices under $60 a barrel today is giving the Dow ammunition to make another try for those record highs," said Peter Cardillo, chief market analyst at S.W. Bach & Co.

U.S. light crude oil for November delivery fell $1.88 to $59.15 a barrel on the New York Mercantile Exchange, a decline of more than 3 percent.

That was good news for most sectors of the stock market, with 21 out of 30 Dow issues rising. Gainers included Boeing (up $1.46 to $81.43, Charts), Honeywell (up $0.49 to $41.84, Charts), JP Morgan (up $0.50 to $47.37, Charts), and Citigroup (up $0.55 to $50.04, Charts).

However, the plunge in oil prices was bad news for oil stocks, which slumped. Exxon Mobil (down $1.11 to $65.89, Charts) and Valero Energy (down $1.53 to $49.41, Charts) were among the stocks dragging down the Amex Oil (down 21.00 to 1,052.96, Charts) index.

COMEX gold for December delivery fell $16 to $587.30 an ounce.

That sparked a selloff in gold stocks, with the Amex Gold Bugs (down $11.84 to $291.03, Charts) index losing 4 percent.

Among other movers, Marvell Technology (down $2.81 to $16.28, Charts) shares plunged 16 percent in active trade after saying late Monday that it will restate financial results going back to its initial public offering in 2000, due to misdated stock options. The chipmaker also warned that third-quarter sales will be down 10 percent from the previous quarter, due to weaker demand from disk-drive makers.

Market breadth was mixed. On the New York Stock Exchange, losers and winners were roughly even as 660 million shares changed hands. On the Nasdaq, decliners edged advancers by a narrow margin on volume of 800 million shares.

Last week, the major gauges finished out the best third quarter since 1997. The S&P 500 rose just short of 5 percent in the third quarter, while the Dow gained 4.5 percent. The Nasdaq gained 3.8 percent.

Treasury prices inched lower. The yield on the 10-year note stood at 4.61 percent, up from around 4.60 percent late Monday. Treasury prices and yields move in opposite directions.

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