The Dow Jones industrial average gained 56.57 points to close at 6,935.46, taking back about a third of yesterday's slide, which was the blue-chip barometer's fifth-worst point drop ever.
Advancers outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,443 up, 1,074 down and 828 unchanged. NYSE volume was 486.93 million shares vs. 503.73 million yesterday.
The Standard & Poor's 500-stock list rose 3.61 to 793.17, the NYSE's composite index rose 1.83 to 417.70, and the American Stock Exchange composite index rose 2.45 to 600.47.
But the Nasdaq composite index gave back some sizable gains by the close, falling 0.29 to 1,292.99.
In stark contrast to yesterday's robust economic readings, the Labor Department reported this morning that wholesale prices paid to farms and factories fell by 0.4 percent last month.
The unexpected decline was more evidence the economy's surprising vigor hasn't translated into accelerating inflation. Economists had been expecting little or no change in wholesale prices.
The producer prices data helped bonds rebound from yesterday's tumble, which boosted long-term interest rates to the highest level in nearly six months. As bond prices rose today, the yield on the 30-year Treasury fell as low as 6.91 percent from late yesterday's 6.96 percent before settling at about 6.94 percent.
Yesterday stocks tumbled with bonds as inflation and interest rate worries intensified after the Commerce Department reported surprisingly heavy retail activity during January and February. The report raised fears that the Federal Reserve will soon raise interest rates to slow borrowing and spending as protection against inflationary demand.