Nasdaq, S&P 500 reach record highs

The Dow gained 247.12, or 2.24 percent, to close at 11,286.18. At one point during the day, the Dow had gained more than 300 points.

The tech-heavy Nasdaq jumped 67.85 points, or about 2 percent, to close at 3,520.63. It crossed the 3,500 mark just three weeks after it surpassed 3,000. Earlier in the day the Nasdaq was up more than 100 points.

The S&P 500 added 24.26 points, or 1.7 percent, closing at a record high of 1,433.3.

The CNET technology index soared 64.75 points to 2,661.89. Some of the tech stocks participating in today's rally included: IBM, up 7.3 to 112.56; Apple Computer, up 4.81 to 115; Atmel, up 4.38 to 52.44; Yahoo, up 7.19 to 253; and Microsoft, up 1.31 to 96.12.

The rally was sparked by two jobs-related reports. The Labor Department reported that average hourly wages rose 0.1 percent last month, the slowest pace in three months and less than what economists expected.

In addition, the government reported that the U.S. unemployment remained at 4.1 percent for the second consecutive month.

Labor costs are closely watched by investors because they account for about two-thirds of consumer prices. If the Federal Reserve perceived that consumer prices are rising rapidly, it would likely raise interest rates and put a damper on the red-hot stock market. As a result, today's wage report was interpreted as reducing the likelihood that interest rates will be increased in the near future.