The stock market's dramatic rebound from its summer sell-off was extended on Wall Street yesterday, led by rising bank and financial services stocks.

The Dow Jones industrial average climbed 103.50, or by 1.1 per cent, to close at 9,159.55, reaching its highest level since July 21st. The Dow is now 178.42 points, or less than 2 per cent, below the record 9,337.97 set on July 17th.

Wall Street's best-known indicator also is up 1,250 points, or nearly 16 per cent, from where it began the year, a much better performance than analysts were predicting as 1998 began.

Since October 8th, the last time it sank below 7,500, it has rebounded almost 1,700 points.

Broader indicators also rose today in trading that was active and above Thursday's pace.

Financial issues led the market higher on expectations that lower US interest rates will bolster the economy with more borrowing and spending. The Federal Reserve cut interest rates on Tuesday, marking the third cut in seven weeks.

Leading the market higher were banks and financial services stocks, which gained on expectations that lower interest rates will spark the economy with more borrowing and spending.

The Standard and Poor's 500 was up 9.73 to 1,162.34, and the technology-heavy Nasdaq composite index rose 8.53 to 1,928.81.

Advancing issues outnumbered decliners by a seven-to-five margin on the New York Stock Exchange, with 1,740 up, 1,235 down and 541 unchanged.