March 14 (Bloomberg) -- U.S. stocks rose, erasing a 136- point tumble in the Dow Jones Industrial Average, as energy shares climbed with the price of crude and computer-related companies rallied on the outlook for profit growth.

Exxon Mobil Corp., the world's largest oil producer, led energy shares to the biggest gain in the S&P 500. Computer- related companies, whose earnings growth is forecast to be the highest of any industry this year, advanced after Qualcomm Inc. was upgraded by JPMorgan.

``There's still a solid fundamental backdrop in the market,'' said Timothy Woolston, who helps manage more than $2 billion at Boston Advisors LLC in Boston. ``The sell-off has brought down some companies that are exhibiting good earnings growth. Plenty of companies out there are doing just fine.''

The Standard & Poor's 500 Index climbed 7.58, or 0.6 percent, to 1385.53 as of 2:44 p.m. in New York after earlier dropping to 1363.98, a four-month low. The Dow average added 31.89, or 0.3 percent, to 12,107.85. The Nasdaq Composite Index increased 15.94, or 0.7 percent, to 2366.51.

Stocks plunged earlier after losses at General Motors Corp.'s mortgage unit rekindled concern that bad loans will send the economy into a recession. The Dow and S&P 500 both reached the lowest level this year before rebounding after midday.

Energy stocks in the S&P 500 rose 1 percent, the most among 10 industry groups. Crude oil for April delivery increased 0.4 percent to $58.15 a barrel at 2:30 p.m. in New York after the Energy Department reported an unexpected decline in U.S. refinery operating rates.

Exxon Advances

Exxon added 91 cents, or 1.3 percent, to $70.82 for the third-biggest gain in the Dow average. Valero Energy Corp., the largest U.S. oil refiner, rose 91 cents to $61.10.

Computer-related companies rose 0.9 percent. Analysts expect 14.1 percent average profit growth this year for technology companies in the S&P 500.

Microsoft Corp., the world's biggest software company, added 4 cents to $27.16.

Qualcomm rose $1.36 to $43.19. The world's second- biggest maker of chips for mobile phones was upgraded to ``neutral'' from ``underweight'' at JPMorgan on the prospect that sales will rise. ``Business fundamentals appear to be reaccelerating,'' analyst Ehud Gelblum wrote.

GM, the world's largest automaker, retreated as subprime loan losses at GMAC caused operating earnings to miss analysts' estimates. It sent the Dow average below 12,000 for the first time since November and dragged down financial shares before a rally in computer-related stocks pared the slide.

The Chicago Board Options Exchange SPX Volatility Index, an indicator that measures the rate of expected stock-market swings, climbed to a nine-month high today after U.S. stocks dropped to the lowest since November.

The so-called VIX rose as much as 17 percent to 21.25, the highest level since June 14. The measure has jumped as much as 91 percent since a sell-off in China sparked a global equity rout on Feb. 27. The gauge fell to a 13-year low in December and has declined every year since 2002.

To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net.

Last Updated: March 14, 2007 14:50 EDT