The dollar gained ground, crude oil prices jumped in late trading and sugar prices dropped to 13-year lows. The Dow jumped 132.87 points, or 1.27 per cent, to 10,581.42, beating the record set just last Friday.

In the broader market, advancing issues swamped declines 1,938 to 1,091 on active volume of 914 million shares on the New York Stock Exchange. The technology-laced Nasdaq composite index jumped 78.65 points, or 3.26 per cent, to 2,488.29. On Tuesday, the Nasdaq rallied 64 points, erasing nearly half of Monday's loss of 138 points, its second-biggest point drop ever. IBM climbed 2- to 171-7/8. After the close, the world's largest computer maker said its first-quarter earnings had increased 50 per cent to $1.5 billion, exceeding Wall Street's estimates, on a 15 per cent increase inrevenue.

Earlier this week, the technology sector was hammered as investors switched into stocks -- oil, paper and chemical -- would benefit from a recovery in the global economy.

The benchmark 30-year Treasury bond closed down point, or $2.50 on a $1,000 bond. The yield, which moves in the opposite direction, rose to 5.53 per cent from 5.52 per cent at Tuesday's close.

The dollar rose against the yen amid more gloomy statements about Japan's sluggish economy and talk that Tokyo may soon need to step up its rescue efforts.

The dollar also gained against Europe's single currency following another hectic session in which the euro set a lifetime low at $1.0577, its second record low this week.

In late trading, the dollar stood at 119.77 yen, up from Tuesday's 118.77 close. It traded at $1.0608 per euro, compared with $1.0628 Tuesday. In other trading, the British pound slipped to $1.6067 from $1.6105 on news that all members of Monetary Policy Committee had voted for a recent interest rate cut.

Atthe New York Board of Trade, world sugar for July delivery closed 0.23 cent lower at 4.52 cents a pound after skidding to 4.48 cents, the lowest price since mid-1986.