* Amazon hits record high, boosting S&P and Nasdaq
* Oil up 3 pct, boosting energy shares
* Gap drops after sales fall for fifth straight quarter
* Indexes up: Dow 0.98 pct, S&P 0.89 pct, Nasdaq 0.69 pct (Adds details, changes comment, updates prices.)
By Tanya Agrawal
May 10 (Reuters) - U.S. stock rose strongly in late morning trading on Tuesday, helped by a rally in financial shares and with commodity prices boosting energy and industrial stocks.
Amazon jumped as much as 3.2 percent to a record high of $701.40, providing the biggest boost on the S&P and the Nasdaq, after Bernstein set a $1,000 price target on the stock.
All 10 major S&P sectors were higher, led by a 1.35 percent rise in the energy index. Oil was up over 3 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply.
World stock markets had also risen, 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.
“Comments from Japan regarding an intervention in the yen and a stabilization in oil prices are helping equities today,” said Dan Farley, regional investment strategist at U.S. Bank Wealth Management in Minneapolis.
“We’re also at the end of the earnings season and while we aren’t expecting a massive improvement in profit, I do expect to see some revenue growth in the second quarter.”
At 11:00 a.m. ET (1500 GMT) the Dow Jones industrial average was up 173.37 points, or 0.98 percent, at 17,879.28, the S&P 500 was up 18.39 points, or 0.89 percent, at 2,077.08 and the Nasdaq Composite was up 32.58 points, or 0.69 percent, at 4,782.78.
The S&P 500, which has risen about 15 percent since its February lows, has seen its rally slow in the last two weeks due to underwhelming quarterly earnings and mixed U.S. economic data.
However, a three-day losing streak was broken on Friday after a disappointing U.S. jobs report suggested the Federal Reserve would raise rates just once this year. Wall Street also ended mostly higher on Monday as healthcare shares rose.
The S&P industrials sector was up about 1.33 percent. The financials index gained 1.21 percent, with Goldman up 2 percent and JPMorgan up 1.4 percent.
Gap tumbled 12.7 percent to $19, the biggest drop among S&P 500 companies, after the retailer reported a decline in sales for the fifth straight quarter.
Allergan was up 5.9 percent at $226.46 after the Botox maker reported a better-than-expected quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 2,082 to 731. On the Nasdaq, 1,564 issues rose and 977 fell.
The S&P 500 index showed 40 new 52-week highs and four new lows, while the Nasdaq recorded 28 new highs and 36 new lows. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D‘Souza)