Stocks rose yesterday as a three-day, earnings-worry slump gave way to bargain hunting. The Nasdaq composite index rose 26.01 points, or 1.25 per cent, to end at 2,110.51 while the Dow Jones industrial average added 39.30 points, or 0.36 per cent, to 10,911.94.

"We have had a weak market in the last couple of days and I think people are saying, `Hey, I have some cash sitting on the sidelines. Let's put some to work,' said Mr John Forelli, senior vice-president at Independence Investment Associates.

Buyers' enthusiasm on the last trading day in May was held back after the government reported that the number of Americans signing up for first-time unemployment benefits rose last week to the highest level in a month.