Wall Street stocks registered a dramatic recovery, erasing almost all of a 177-point plunge by the Dow Jones industrial average, after tumbling amid another increase in interest rates and an unsettling downgrade in the technology sector. The Dow, down nearly 125 points with just half an hour left to the session, ricocheted back to close at 7,887.91, down only 6.04 points.

Declining issues still outnumbered advancers by two-to-one on the New York Stock Exchange, with 992 up, 1,906 down and 479 unchanged. Before the late rebound, however, that ratio had stood closer to four-to-one.