U.S. stocks rose, sending the Standard & Poor’s 500 Index to a seven-month high, as a drop in Treasury yields eased concern higher borrowing costs will stifle an economic recovery and oil’s rally lifted energy shares.

Schlumberger Ltd. and Chevron Corp. climbed at least 2.3 percent and were among the biggest contributors to the advance as crude topped $73 a barrel for the first time since October. Bank of America Corp. surged 8.3 percent to lead financial stocks higher after Morgan Stanley boosted its profit estimates. Treasury yields retreated as the highest levels of the year attracted buyers to an auction of 30-year bonds.

The S&P 500 added 0.6 percent to 944.89 at 4:09 p.m. in New York, its highest close since Nov. 5. The Dow Jones Industrial Average rose 31.9 points, or 0.4 percent, to 8,770.92. Oil climbed to as high as $73.23 a barrel in New York, while 10-year government bond yields slid to 3.87 percent after reaching 4 percent for the first time since October.

Today’s gain erased the Dow average’s 2009 loss on an intraday basis, yet it failed to maintain the year-to-date gain on a closing basis for a fifth straight day. Down 25 percent on March 9, its worst start to a year, the benchmark is the only major U.S. stock gauge yet to turn positive for the year.

(Bloomberg.com)