Stocks rallied yesterday on Wall Street in the wake of a favourable earnings report from Internet giant Yahoo that lifted the technology sector.

The tech-heavy Nasdaq surged 143.16 points (3.62 per cent) to close at 4,099.58 while the Dow Jones industrials were up 56.57 points (0.53 per cent) at 10,783.76. The Standard and Poor's 500 rose 12.04 points (0.91 per cent) to 1,492.92.

On the bond market, the yield on the 10-year bond edged up to 6.077 per cent from 6.048 per cent on Tuesday but was unchanged on the 30-year bond at 5.883 per cent. Bond yields and prices move in opposite directions.

On the New York Stock Exchange, 1,739 issues were higher, 1,151 lower and 481 unchanged with 999 million shares traded. Volume on the Nasdaq was 1.77 billion shares.