Blue chip stocks posted their biggest one-day gain in nearly two months Tuesday as stocks staged a powerful rally amid good earnings news and a two-year-high in consumer confidence.

The Dow Jones Industrial Average [$INDU] closed up 123.22 points, or 1.2 percent, at 10,085.14, its biggest one-day gain since June 7 when it advanced 149 points.

The Nasdaq Composite Index [$COMPQ] jumped by 30.08 points, or 1.6 percent, to 1,869.10 and the S&P 500 [$SPX] rose 10.76 points, or 1 percent, to 1,094.83.

Strategists were pleased with the gains but reluctant to call a market turnaround after recent multi-month lows.

Source: Agencies