STOCKS rallied yesterday, adding more than 150 points to the Dow Jones, as investors took advantage of Monday's steep sell-off.

The Dow recouped 153.80 points of Monday's 192-point plunge, closing at 7,758.06, less than 40 points shy of Friday's record high.

Most broad-market indicators also stormed back from the previous session's tailspin. A strong technology sector boosted the Nasdaq market into record territory.

Most of today's action took place in the final two hours of trading.

Advancing issues outnumbered decliners by a 9-to-5 margin on the New York Stock Exchange, with 1,781 up, 985 down and 635 unchanged.

The Standard and Poor's 500-stock list rose 17.72 to 896.34, and the NYSE composite index rose 7.68 to 466.17, leaving both measures less than 2 points shy of record territory.

The Nasdaq composite index rose 18.11 to 1,452.43, beating last Thursday's record finish at 1,447.14.