YAHOO [BRIEFING.COM]: Stocks set fresh four-month highs as buyers provided broad support amid a steep drop by the dollar, which was sunk by speculation of further quantitative easing.

Participants first appeared uninspired by news that Australia's reserve bank left its cash rate unchanged at 4.5% after a series of rate hikes and that Japan's central bank cut its key interest rate to near zero. However, Japan's plans for a 5 trillion yen fund to purchase bonds and other asset backed securities forged the idea that the U.S. may also have in place plans for further quantitative easing.

Such a prospect weighed heavily on the dollar, which dropped 0.8% to a new eight-month low, but spurred higher almost 98% of the names in the S&P 500. The broad index settled at its best level since May.

The stock market's move to that mark was gradual. It had hesitated near key resistance levels, but got some additional support after the release of the September ISM Service Index. The Index came in at 53.2, up from the prior month and above the 51.8 that had been widely expected among economists polled by Briefing.com.

The materials sector benefited the most from this session's buying. It rallied 2.8% for its best single session advance in one month. Support for natural resource plays and basic materials stocks was augmented by a jump in commodities, which sent the CRB Commodity Index up 1.6%. Precious metals outshined as the continuous gold contract climbed close to 2% to set a new all-time high of $1340.60 per ounce and the continuous silver contract spiked more than 3% to a fresh 30-year high at $22.92 per ounce.

Adding to the impressiveness of this session's strength was robust share volume. More than 1.2 billion shares traded hands this session. That's close to what was traded during the portfolio rebalancing and window dressing at the end of the third quarter.

Strength in commodities was largely based on the weakness in the dollar, which sold off on talks about additional quantitative easing. Precious metals (+2.8%), grains (+2.8%), and soft commodities (+1.9%) posted the best gains this session.

It was another record setting session for gold and silver, as the continuous gold contract rallied to a new all-time high at $1340.60 per ounce, while the continuous silver contract put in a fresh 30-year high at $22.92 per ounce. December gold rallied for 1.9% to finish at $1340.60 per ounce while December silver settled higher by 3.7% at $22.74 per ounce. Both metals traded to their best levels in the afternoon session and closed just shy of those highs.

Talk of more quantitative easing and the dollar's resulting weakness combined with strength in equities to support oil throughout the session. November crude oil finished higher by 2.2% at $82.82 per barrel. Crude traded to highs at $82.99 per barrel, its best levels in about one month. November natural gas ended higher by 0.5% at $3.74 per MMBtu after it stumbled midmorning.

Advancing Sectors: Materials (+2.8%), Industrials (+2.7%), Financials (+2.4%), Tech (+2.3%), Energy (+2.3%), Consumer Discretionary (+2.1%), Health Care (+1.8%), Telecom (+1.7%), Utilities (+1.1%), Consumer Staples (+1.1%)
Declining Sectors: (None)DJ30 +193.45 NASDAQ +55.31 NQ100 +2.5% R2K +3.0% SP400 +2.1% SP500 +23.72 NASDAQ Adv/Vol/Dec 2146/2.24 bln/491 NYSE Adv/Vol/Dec 2448/1.24 bln/561