Stocks bounce back after market's worst day in two months; Technology stocks lead the gains

NEW YORK, N.Y. – The U.S. stock market had its best day of the year as technology companies surged.

The Dow Jones industrial average rose 115 points, or 0.7 per cent, to close at 16,373 Tuesday. It was only the third gain of the year for the Dow.

The Standard & Poor’s 500 index rose 19 points, or 1.1 per cent, to 1,838. The technology-heavy Nasdaq composite index rose 69 points, or 1.7 per cent, to 4,183.

Intel rose 4 per cent, the most of the 30 stocks in the Dow, followed by Microsoft with a 2 per cent increase.

Time Warner Cable rose 3 per cent after the company rejected a takeover bid from Charter Communications, raising hopes that the price would be increased.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.87 per cent.