As of yesterday's close, the Nasdaq composite index had recovered an impressive 71.6 percent of its value since Oct. 9, 2002, while the Dow Jones industrials were up 32.9 percent and the Standard & Poor's 500 index had regained 33.7 percent.

A Labor Department report suggesting the pace of layoffs has slowed fed the market's good mood.

The Nasdaq rose 18.12, or 1 percent, to close at 1,911.90. The most battered of the market's major indexes during Wall Street's three-year slump, the Nasdaq last closed higher 19 months ago, on March 11, 2002, when it stood at 1,929.49. A year ago, on Oct. 9, 2002, the Nasdaq was at a six-year low of 1,114.11.

The Dow advanced 49.11 yesterday, or 0.5 percent, to 9,680.01 — its highest close since June 18, 2002, when the average was at 9,706.12. On Oct. 9 of last year, the Dow stood at a five-year low of 7,286.27.

The market got a lift from the government's report that new claims for unemployment insurance fell last week to their lowest level in eight months. The Labor Department reported yesterday that for the work week ending Oct. 4, new applications for jobless benefits dropped by a seasonally adjusted 23,000 to 382,000, the best showing since Feb. 8.