Light crude for November delivery surged above the psychologically important $50 milestone early in the session, but backed off that record high after Saudi Arabia indicated it would raise its output if necessary.

Nervous about rising energy costs, investors had turned to the safety of Treasury bonds lately, but with the third quarter drawing to a close and oil prices easing, they seemed ready to return to stocks — especially after several sessions of equity declines.

According to preliminary calculations, the Dow Jones industrial average closed up 88.86, or 0.9 percent, at 10,077.40.

The broader gauges also posted gains. The Standard & Poor's 500 index added 6.54, or 0.6 percent, to 1,110.06. The Nasdaq composite index added 9.99, or 0.5 percent, to 1,869.87.

In economic news, consumer confidence declined for a second straight month, according to the Conference Board. The index fell 1.9 points to 96.8 from a revised reading of 98.7 in August. Analysts had expected a reading of 99.5. Economists blamed the decline on soft labor-market conditions.

Uncomfortably high oil prices have dogged the equity market for months, and the major

indexes all posted steep declines over the past week amid mounting worries about rising business expenses and falling consumer spending. Analysts are largely upbeat about the market's underlying fundamentals, but given all the uncertainties surrounding energy costs, the jobs picture, the upcoming presidential election and persistent terror fears, few were convinced the upward move would last.

AtheroGenics Inc. soared 64 percent, or $14.84, to $38 on news that an interim analysis of a treatment to cut arterial plaque might help reverse the progression of heart disease.

Google Inc. rose 7.3 percent, or $8.60, to $126.86, after several brokerage firms initiated coverage of the stock with high expectations.

Starbucks Corp. added 20 cents to $44.58 after saying it would raise the average price of its beverages by 11 cents at its 4,500 stores across North America because of increases in the costs of coffee and sugar.

Advancing issues outnumbered decliners by more than 2 to 1 on the New York Stock Exchange.

The Russell 2000 index, which tracks smaller company stocks, was up 7.30, or 1.3 percent, at 565.66.

Overseas, Japan's Nikkei stock average fell 0.4 percent. In Europe, France's CAC-40 added