Stocks rallied this morning after a 3 percent drop in major indexes yesterday as investors seemed to grow more optimistic about an economic recovery, the Associated Press reported.

The market experienced a pullback yesterday after the White House rejected General Motors Corp.’s and Chrysler LLC’s restructuring proposals. Last week, it rallied on better-than-expected home sales, retail sales and durable goods data.

The Dow Jones industrial average is down 14.3 percent for the year, but up 14.5 percent from its nearly 12-year low on March 9.

As of 10:20 this morning, the Dow was up 111.19 points to 7,633.21. The Nasdaq composite index was up 25.58 points to 1,527.38 and the Standard & Poor’s 500 index was up 11.82 points to 799.35.

Rob Lutts, president of Cabot Money Management, said he is buying stock in industries such as energy and technology, which usually turn around when the economy does.

“I’m hopeful that by the end of the year, conditions will have improved,” he said.

Bond prices were down, with the yield on the benchmark 10-year Treasury note rising to 2.74 percent from 2.72 percent late yesterday. Crude oil rose $1.15 to $49.56 per barrel on the New York Mercantile Exchange.