Falling bond yields cheer Wall Street

US stocks climbed more than 1 per cent yesterday as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery.<br /><br />Energy company shares, including <strong>Exxon Mobil</strong>, rose as US crude oil settled above $65 a barrel for its highest close since November, boosted by a drop in crude inventories last week. OPEC decided to hold production at current levels.<br /><br />The Dow Jones industrial average gained 103.78 points, or 1.25 per cent, to finish at 8,403.80. The Standard &amp; Poor&rsquo;s 500 Index was up 13.77 points, or 1.54 per cent, at 906.83. The Nasdaq Composite Index was up 20.71 points, or 1.20 per cent, at 1,751.79.<br /><br />Equities recovered Wednesday&rsquo;s losses, extending gains late in the session.<br /><br />After the market&rsquo;s close, shares of computer maker <strong>Dell</strong> rose more than 1 per cent to $11.61 after its results narrowly beat analysts&rsquo; estimates.<br /><br />The US bond market also rebounded as benchmark 10-year notes bounced 24/32 higher for a yield of 3.64 per cent, 10 basis points lower on the day, after an auction of $26bn in new seven-year Treasury notes. Another Treasury auction on Wednesday helped fuel selling of bonds and stocks as investors worried about expanding US government debt. Investors have grown concerned that rising bond yields, which move inversely to bond prices, portend a possible rise in borrowing costs, which could choke a much-anticipated economic recovery.<br /><br />Hopes that the economy may be stabilizing helped stocks recover from 12-year lows of early March, but since early this month the market&rsquo;s rebound has been a bit bumpier. Still, at yesterday&rsquo;s close, the S&amp;P 500 was up 34 per cent since the 9 March low.<br /><br />Financial shares also helped boost the Dow in yesterday&rsquo;s trade, with JP <strong>Morgan Chase</strong> up 5.7 per cent at $36.65. <strong>Chevron</strong> also led gains in the energy sector. The stock was up 1.9 per cent at $65.81. <strong>Exxon</strong> was up 1.4 per cent at $69.23. Economic data was mixed, with new orders for durable goods seeing their biggest gain in 16 months, while new home sales rose slightly less than expected.