Blue-chip stocks scored modest gains in New York yesterday, but the broad market faltered after an early bid at extending the rebound from Friday's steep drop.

The Dow Jones industrial average rose 32.96 points - or 0.4 per cent - to 8,566.61 after swinging from an early 85-point gain to a 30-point loss. On Friday, the Dow finished 77 points lower after rebounding more than 200 points from a 283-point plunge.

The Standard and Poor's 500 rose 6.89 to 1,088.13, and the technology-heavy Nasdaq composite index fell 6.79 to 1,790.82.

Declining issues outnumbered advancers by a 7-to-6 margin on the New York Stock Exchange, with 1,413 up, 1,650 down and 496 unchanged.

NYSE volume totalled 557.23 million shares, down from 723.93 million on Friday.

The NYSE composite index rose 2.90 to 543.72, and the American Stock Exchange composite index fell 2.56 to 649.32.