NEW YORK - U.S. stocks climbed steeply higher for a second day straight as declining oil prices and revived activity on the deal-making front fueled technology stocks, helping offset a round of weak economic reports.

"The three biggest drivers were today's economic data stream was neutral, a pullback in energy prices is positive, and I would say there is a lot of buzz around the Internet space," said Art Hogan, chief market strategist at Jefferies & Co.

CBS Corp. said it will buy CNet Networks Inc., an online provider of technology news and product reviews, for $1.8 billion in cash. Yahoo shares also remained in focus with billionaire Carl Icahn planning to take over its board.

The Dow Jones Industrial Average gained 94.28 points, or 0.7 percent, to end at 12,992.66, with 22 of its 30 components posting gains, led by General Motors Corp., up 5.2 percent, Intel Corp., ahead 4.7 percent, and Hewlett-Packard Co., ahead 2.4 percent.

Blue-chip declines were fronted by United Technologies Corp., off 1.2 percent.

The S&P 500 climbed 14.91 points, or 1.1 percent, to 1,423.57, with energy fronting gains among the S&P's 10 industry groups, up 2.2 percent, followed by information technology, ahead 2.1 percent.

Utilities proved the S&P's sole declining sector by the close, down 0.2 percent.

Crude-oil futures retreated from an earlier climb of as much as $2 a barrel, as a bigger-than-expected climb in U.S. natural gas supplies pushed prices for natural gas to their lower level in more than a week. Crude for June delivery shed 10 cents to close at $124.12 a barrel on the New York Mercantile Exchange.

Gold for June delivery surged $13.5 to end at $880 an ounce, with prices holding tight to earlier strength even as the U.S. dollar moved higher against its currency rivals and crude futures turned lower.

In other commodities trade, most agricultural-related stocks traded higher in the wake of the Senate's passage of the farm bill by a veto-proof majority, with ethanol-tied shares leading the pack.

The technology-laden Nasdaq Composite rose 37.03 points, or 1.5 percent, to 2,533.73, with the tech sector heartened by billionaire investor Carl Icahn's plan to take over the board of Yahoo Inc., along with other M&A activity in the online arena.

Shares of Yahoo edged up 2.3 percent.

The benchmark 10-year Treasury note gained 0.9 percent to 100.013, its yield slipping to 3.825 percent.

Weekly jobless claims rose and manufacturing activity in the New York and Philadelphia regions contracted, but the Philadelphia survey showed activity shrank at a less rapid pace in May, proving better than forecast.

"The economic data at the very worst was mildly negative, but I would cast it as benign," Hogan said.

Speaking in Chicago, Federal Reserve Chairman Ben Bernanke urged banks to raise more capital, but refrained from criticizing federal oversight of financial institutions.

Media giant CBS said Thursday it would buy CNet Networks for a 45 percent premium in a move to expand its reach further onto the Web.

Also on the online front, Comcast is buying a social networking site, Plaxo, and IAC/Interactive is going to buy Lexico Publishing Group.

Overseas, German and French economic growth was stronger than forecast during the first quarter as exports held up surprisingly well in the face of a stronger euro. Japan's core machinery orders dropped a greater-than-forecast 8.3 percent in March.

In Tokyo, the Nikkei 225 Average ended 0.9 percent higher at 14,251.74, its best closing level since more than four months.

The FTSE 100 ended up 0.6 percent in London.

U.S. stocks ended with gains on Wednesday after the government said inflation was tame in April.