A rally in oil stocks and some bargain-hunting buoyed the Dow Jones industrials yesterday. In a major turnaround from recent weeks, the strength in blue-chips helped pull technology stocks out of a severe slump.

On Wall Street, the Dow Jones industrial average rose 198.25, or 1.9%, to close at 10,718.09.

Broader market indicators were modestly higher, but overall, the number of declining issues outpaced advancers.

The Standard and Poor's 500 rose 12.11 to 1,402.05.

The Nasdaq composite index, which tumbled as much as 127 points in earlier trading, closed up 1.86 at 4,420.41.