* Amazon hits record high, boosting S&P and Nasdaq
* Higher oil drives up energy shares
* Gap drops after sales fall for fifth straight quarter
* Indexes up: Dow 1.06 pct, S&P 1.06 pct, Nasdaq 1.03 pct (Updates with afternoon trade)
By Noel Randewich
May 10 (Reuters) - U.S. stocks rose across the board on Tuesday, with a rally in Amazon.com putting the S&P 500 on track for its best day in a about a month.
Buoyed by rises in oil and global stock markets, Wall Street’s gains appeared to breathe new life into a two-month rally that petered out in mid-April, and it left the S&P 500 with an increase of nearly 2 percent for 2016.
Amazon jumped 3.2 percent to a record of $701.40, giving the biggest boost to the S&P and the Nasdaq. Bernstein raised its price target on the stock to $1,000, the highest on Wall Street, saying it believes Amazon’s margins will expand much faster than currently expected.
All 10 major S&P sectors gained and six of them were up over 1 percent, led by a 1.64-percent rise in the industrials index and a 1.55-percent rise in the energy index. Oil rose 4 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply.
International stock markets were helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken the yen.
“There’s pent-up demand to buy,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “You’re seeing the cream rise to the top but the bottom of the barrel stuff is also getting a nice pop.”
At 2:39 pm, the Dow Jones industrial average was up 1.06 percent at 17,893.01 points and the S&P 500 had gained 1.06 percent to 2,080.51.
The Nasdaq Composite jumped 1.03 percent to 4,799.37.
The S&P 500 and Nasdaq were set for their biggest intraday percentage gain since April 13 and the Dow was on track for its biggest gain since March 11.
Gap tumbled 11.78 percent after the retailer reported a decline in sales for the fifth straight quarter.
Allergan added 4.48 percent after the Botox maker reported a better-than-expected quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 2,266 to 697. On the Nasdaq, 1,827 issues rose and 952 fell.
The S&P 500 index showed 46 new 52-week highs and four new lows, while the Nasdaq recorded 45 new highs and 50 new lows. (Additional reporting by Tanya Agrawal; Editing by Savio D’Souza and Nick Zieminski)