US stocks rose yesterday, with the Nasdaq market streaking to its 13th high this year and its first close above 4,700 on record volume, while the broader stock market got a lift from reports that some telecommunications stars were planning big strategic moves.

The rally came as Wall Street chose to shrug off the inflationary implications of economic data, released early in the session, signalling greater-than-expected strength in the manufacturing sector in February.

The Dow Jones, which seesawed all session long, settled up 9.62 points, or 0.09 per cent, at 10,137.93. Volume on the New York Stock Exchange was nearly 1.27 billion shares, making it the Big Board's second-busiest day ever.

The Nasdaq surged 87.39, or 1.86 per cent, to 4,784.08. The Standard & Poor 500 gained 12.77 points, or 0.93 per cent, to 1,379.19, and the Russell 2000 index advanced 10.64 points, or 1.84 per cent, to a record high close of 588.35.