NEW YORK - WALL Street shares powered higher on Thursday to extend their rally amid growing optimism on prospects for economic recovery as the market shook off the latest grim reminders of the depth of the slump.

The Dow Jones Industrial Average vaulted 174.75 points (2.25 per cent) to 7,924.56 at the closing bell, extending the rally that has pushed the blue-chip index up more than 20 per cent from March 9 lows.

DETROIT - ABOUT 7,500 General Motors (GM) workers - roughly 12 per cent of the automaker's US hourly work force - have signed up to take buyout and early retirement incentives to leave the company, GM said on Thursday.

Also, Chrysler said on Thursday it would extend its deadline to entice blue-collar workers to leave. The old deadline was Friday.

This includes a new regulator to oversee the entire financial system in a bid to restrain behaviour that led to the worst credit crisis since the 1930s.