Toronto stocks closed Tuesday as investors shopped for bargains following the recent selloff. The S&P/TSX composite index rose 77.53 points to finish at 7,644.04.

A drop in consumer inflation led to optimism that the Bank of Canada may have room to cut interest rates further in the future.

The rally was broad-based as gold stocks gained 0.99% despite lower bullion prices.

Barrick Gold rose 35¢ to $27.42. It selected a new chief operating officer as part of a major corporate re-organization. It was the first major management change since the firing of former CEO Randall Oliphant in February.

Technology shares climbed 1.37%, energy issues gained 1% and consumer discretionary shares jumped 1.75%.

In the tech sector, Research In Motion led the way rising $4.03 to $49.15 while Sierra Wireless gained $2.22 to $19.92.

Nortel Networks, which won a $200 million contract from France’s railway system on Tuesday, rose 18¢ to $6.24.

In the energy group, EnCana rose 95¢ to $49.15 and Canadian Natural Resources was up $1.15 at $54.15.

Oil prices rose on Tuesday on the eve of an OPEC meeting that is widely expected to leave existing production quotas in place.

The junior S&P/TSX Venture composite index rose 7.39 points to 1,389.62.

In New York, the major market averages Wall pushed higher as strong earnings from companies such as Morgan Stanley helped offset investors’ lingering concerns about a weak dollar.

The Dow Jones industrial average closed up 40.63 to 9,576.04, having lost 109 points in the previous session.

The tech-heavy Nasdaq composite index gained 27.11 to 1,901.73. The S&P 500 rose 6.22 to 1,029.04.

The Canadian dollar fell 0.58¢ to US73.66¢.