TECHNOLOGY shares rose on Wall Street after a robust profit report from Dell Computer, but blue chip shares pulled back from a foray into record territory as interest rates jumped in the bond market.

The Dow Jones industrial average dropped 12.77 points to close at 7,290.69, after recovering from a 64 point drop. In the morning, the Dow surrendered a 50 point gain that would have beaten last Thursday's record finish at 7,333.55.

Stocks drew heavy pressure from the bond market, where interest rates jumped as inflation worries reemerged just a day after the Federal Reserve's apparent determination that inflationary pressures remain tame.

Bonds fell after the Commerce Department reported that the US trade deficit narrowed dramatically in March to $8.5 billion as exports rose to a second consecutive monthly record.

Advancing issues outnumbered decliners by more than five to four on the New York Stock Exchange