US stocks rise in afternoon trading

The flight of Taliban forces from Afghanistan's capital gave US investors a surge of optimism and sent stocks climbing sharply.

Relief that Monday's jetliner crash in New York City appeared to be an accident and not the result of terrorism added to the market's upbeat mood.

The news developments boosted the confidence of investors, with a growing number buying on the belief that the market has reached bottom, analysts said.

The Dow Jones industrial average closed up 196.58 at 9,750.95, a sharp contrast with the plunge it took in the hours after Monday's plane crash.

Broader stock indicators also closed higher. The Nasdaq composite index closed up 51.98 at 1,892.11, and the Standard & Poor's 500 index was up 20.76 at 1,139.09.

Analysts said the market - which has rebounded to pre-September 11 levels in recent weeks - was encouraged by what it saw as signs of progress in the fighting in Afghanistan. Opposition forces arrived in the capital, Kabul, and Taliban troops left, possibly heading for the mountains to continue their fight.

The optimism fuelled strong buying in technology stocks despite a statement late on Monday from Oracle CEO Larry Ellison that his company's earnings in the current quarter will likely fall short of expectations.

Oracle's stock fell 88 cents to dlrs 14.52.

But investors found good news in Texas Instruments, which filed paperwork with the Securities and Exchange Commission saying that the third quarter will mark the low point for semiconductor orders and that it expects to meet fourth-quarter expectations.

Texas Instruments rose dlrs 1.92 to dlrs 33.82.

AMR, parent of American Airlines, saw its shares rise 63 cents to dlrs 17.12. General Motors shares rose dlrs 2.60 to dlrs 44.99 after the car manufacturer named Robert Lutz chairman of its industry-leading North American operations.