* Fed stimulus plan lifts stocks in broad move higher
* Retail stocks rally after October sales rise 1.6 pct
* Indexes up: Dow 1.6 pct, S&P 1.5 pct, Nasdaq 1.2 pct (Updates to afternoon trading, changes byline)
By Ryan Vlastelica
NEW YORK, Nov 4 (Reuters) - A two-month rally in U.S. stocks showed no signs of fatigue on Thursday as shares broadly climbed more than 1 percent a day after the Federal Reserve unveiled a plan to boost the economy's recovery through monetary stimulus.
A bullish read on consumers added to the positive tone as many retailers posted stronger-than-expected comparable sales for October. The S&P retail index gained 1.8 percent.
The Fed's plan to buy $600 billion in Treasuries lifted riskier assets, including commodity-related stocks that rose on expectations of an increase in global demand. An index of commodity prices rose 2.3 percent and hit its highest level in more than two years.
"The Fed news is really driving up commodity-related companies and spreading to other areas of the economy," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "It's really a perfect storm of good news."
The rally lifted most sectors almost five stocks rose for every one that fell on the New York Stock Exchange.
Mining company Freeport McMoRan Copper and Gold Inc jumped 6.2 percent to $103.09, a price not seen since 2008. The S&P materials index was up 2.9 percent, and Dow component Exxon Mobil Corp added 2.1 percent to $69.40. Retail stocks rallied after October's same-store sales data, which appeared to bode well for the upcoming holiday shopping season. Target Corp rose 2.3 percent to $55.20 while apparel company Gap Inc advanced 6.6 percent to $20.53.
"Sales were quite good across the board, and any disappointments seemed to be company-specific issues rather than a call on the economy," Tuz said.
The Dow Jones industrial average gained 183.91 points, or 1.64 percent, to 11,399.04. The Standard & Poor's 500 Index added 18.09 points, or 1.51 percent, to 1,216.05. The Nasdaq Composite Index rose 30.15 points, or 1.19 percent, to 2,570.42.
TECHNICAL SIGNALS
The benchmark S&P rose to within three points of a high going back more than two years. The index is up about 16 percent since the start of September as investors priced in the expectation for Fed action as well as Republican gains in the U.S. midterm election.
In what could be seen as conflicting technical signals, the S&P 500 daily moving average convergence-divergence chart triggered a buy signal for the first time since Oct. 18, but its relative strength index, or RSI, jumped near 76. An RSI reading above 70 indicates an overbought level.
The CBOE Volatility Index, Wall Street's so-called fear gauge, fell 4.3 percent. The VIX usually moves inversely with the S&P 500, tracking options prices that investors are willing to pay as a protection on movement of the underlying stocks.
The VIX's decline suggested investors were confident the Fed's efforts will support market gains.
U.S.-listed shares of BHP Billiton Plc were up 6.3 percent at $78.67 after the Canadian government blocked BHP's bid for Potash Corp of Saskatchewan Inc. New York-traded shares of Potash fell 3.3 percent to $140.75.
Investors shrugged off data that showed a weekly rise in new claims for unemployment benefits. Other data showed unit labor costs fell in the third quarter and nonfarm productivity rebounded at a much stronger-than-expected 1.9 percent annual rate in the third quarter.