The Dow Jones industrial average gained 53.11 points to close at 6,762.29, slipping from an 80-point advance during the last half hour, but notching its fourth straight record-close and sixth new high in seven sessions. NYSE volume totaled 531.30 million shares, vs. 443.48 million yesterday.
The Standard & Poor's 500-stock index climbed 9.35 to 768.86, and the NYSE's composite index rose 4.36 to 405.07. The Nasdaq composite index surged 15.45 to 1,346.36, and the American Stock Exchange index rose 2.22 to 588.35.
The new highs came as bonds rebounded from their long slide after the Commerce Department reported the core inflation rate rose just 0.1 percent in December.
Bonds had slid sharply over the past two weeks, sending interest rates soaring, amid a series of unexpectedly robust reports that have undermined hopes the economy had slowed enough to keep a lid on inflationary pressures such as rising production costs.
As bonds rebounded today, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - fell to 6.76 percent from late yesterday's 6.85 percent.
Semiconductor shares were prominent in the day's dealings. Advanced Micro Devices jumped in active NYSE trading after yesterday's report of a smaller-than-expected fourth-quarter loss.