(REUTERS) -- Stocks extended their gains and the S&P topped 1,300 for the first time since Aug. 1 on Tuesday as Chinese data fueled the belief the government may move to stimulate growth.

The data overshadowed recent credit downgrades in Europe and a mixed bag of bank earnings.

The Dow Jones industrial average was up 111.86 points, or 0.90 percent, at 12,533.92. The Standard & Poor's 500 Index was up 12.52 points, or 0.97 percent, at 1,301.61. The Nasdaq Composite Index  was up 27.98 points, or 1.03 percent, at 2,738.65.

(Reporting By Ryan Vlastelica; editing by Jeffrey Benkoe)