Wall Street resumed its rally on Monday, led by natural resources and tech shares as investors saw stocks regaining momentum lost late last week.

A share-buyback from Dow component Intel helped revive optimism, which has been reinforced by more strong profit reports. Three-quarters of the 84 S&P 500 companies that have reported results so far in this earnings season have beaten analysts' estimates.

Strong earnings are what's pushing the market higher and I don't see a correction in sight until the (earnings) season is over, said Keith Springer, president of Springer Financial Advisors in Sacramento, California.

Even after the earnings, I don't think we will see a major correction but rather a pause or a breather since there isn't a major fundamental issue.

Volatility indicators in the options market also suggested a turnaround after the S&P's decline last week when the benchmark index fell after seven straight weeks of gains.

On Monday the Dow Jones industrial average <.DJI> ended up 108.68 points, or 0.92 percent, at 11,980.52. The Standard & Poor's 500 Index <.SPX> was up 7.49 points, or 0.58 percent, at 1,290.84. The Nasdaq Composite Index <.IXIC> was up 28.01 points, or 1.04 percent, at 2,717.55.

The blue-chip Dow neared the psychologically

important 12,000, pulled higher by natural resources stocks like Alcoa while the Nasdaq gained more than 1 percent on large-cap tech shares.

Shares of Alcoa Inc jumped 4 percent to $16.43 after its chief executive said he sees continued demand for aluminum in 2011.

The S&P materials sector <.GSPM> advanced 1 percent. Copper prices rose as concerns about a decrease in Chinese demand were replaced by worries over supply constraints.

Intel Corp shares rose 2 percent to $21.24 after it raised its dividend by 15 percent and authorized another $10 billion for stock repurchases, a sign larger technology companies with slower growth may be looking for ways to reward investors. [ID:nN24174600]

The Credit Suisse Fear Barometer, a gauge for investor sentiment, hit a six-month high late last week and the CBOE Volatility Index <.VIX>, a similar gauge, also jumped more than 10 percent from its lowest point over the past week.

When we've seen a high CSFB (Credit Suisse Fear Barometer) and jumpy VIX in the past, it has usually meant a short-term rebound in the S&P, said Jason Goepfert of SentimenTrader in a report.

Chip-makers recovered from last week's fall with Nvidia Corp shares jumping 11.4 percent to $24.76 after Barron's said its stock could nearly double in price this year.

After the closing bell, VMware Inc shares rose 3.8 percent to $91.18 following results.

Shares of oilfield services company Halliburton Co gained 1 percent to $39.55 in regular trading after reporting earnings.

J.C. Penney Co Inc shares jumped 6.8 percent to $32.40 on news activist investor William Ackman will join the department store operator's board next month, heading off a potential fight over the direction of its turnaround.

(Additional reporting by Doris Frankel in Chicago; Editing by Kenneth Barry)