US tech buying triggers market rally

Strength in the technology sector has sent US stocks soaring.

The Dow closed up 129.88, or 1.3%, at 9,893.84, while the Nasdaq was up 58.20, or nearly 3.1%, at 1,963.10.

Meanwhile, the Standard & Poor's 500 index gained 14.90, or 1.3%, to close at 1,144.80, and the Russell 2000 index was up 10.81 at 4657.84.

The day's rally gave investors hope that the market's post-September 11 advance still has momentum.

The market got a lift from comments by George W Bush, who, speaking to a Florida audience, demanded action from Congress on an economic stimulus package.

Cisco Systems rose 66 cents to $20.52 after the company's chief executive said November orders met expectations, although he also implied that the company's outlook has not changed.

Other tech gainers included Hewlett-Packard, up $1.01 at $22.50, and Ciena, which rose $1.67 to $18.73.

The enthusiasm also helped other sectors. Home Depot rose $1.31 to $47.70 after Merrill Lynch added the stock to its focus list, suggesting it expects strong performance ahead.

AnnTaylor Stores rose 65 cents to $29.05, while Enron rose 46 cents, or 115%, to 86 cents on speculation that up to $1.5 billion in new financing from JP Morgan Chase and Citigroup would help rescue the energy company, which has filed for bankruptcy protection. JP Morgan Chase gained 67 cents to $37.22, while Citigroup advanced 92 cents to $47.83.

Advancing issues led decliners more than 2 to 1 on the New York Stock Exchange. Volume came to 1.29 billion shares, ahead of the 1.20 million reported on Monday.