Stocks rose in a late rally on Wednesday as upbeat housing and durable goods data fueled hopes that the toll taken by the recession may be abating, more than offsetting concerns the United States may struggle to fund plans to pull the economy out of recession.

Durable goods orders, home sales rebound in February.

Poor bond auction hits sentiment.

The Dow Jones industrial average <.DJI> gained 89.84 points, or 1.17 percent, to 7,749.81. The Standard & Poor's 500 Index <.SPX> rose 7.76 points, or 0.96 percent, to 813.88. The Nasdaq Composite Index <.IXIC> added 12.43 points, or 0.82 percent, to 1,528.95.

(Reporting by Rodrigo Campos; Editing by Leslie Adler)