Stocks rocketed in the US overnight, lifting the Nasdaq to its third-largest percentage gain ever after technology bellwether Dell Computer stood by its first-quarter targets and breathed life into the market.
The Dow Jones industrial average posted its second-biggest point gain ever in very heavy volume.
Internet media company Yahoo!, upgraded by investment house Lehman Brothers and aluminum producer Alcoa, which notched a 16 percent increase in first-quarter earnings, offered more relief to investors rattled by this year's stock-market weakness in the economic downturn.
"I don't think we can make a case that we have, or have not, had that final blowoff. But whether or not we have, if you commit capital at today's levels, six months from now, you will stand very well rewarded," said Charles Lemonides, chief investment officer, at M&R Capital Management, which oversees US$300 million.
The Nasdaq Composite Index bolted up 146.20 points, or 8.92 percent, to 1,785.00, snapping a three-day losing streak and raking in its third-biggest percentage gain ever in heavy trading.
It was the largest Nasdaq rally in three months. But the technology-packed index remains nearly 65 percent off its March 10, 2000, peak of 5,048.62, and is down nearly 28 percent for the year.
Market breadth was overwhelmingly positive. On the Nasdaq, gainers outnumbered losers by a mix of 29 to nine.
"The Dell news seems very positive," said Art Hogan, chief market analyst at Jefferies & Co. "The general sense is that we are oversold here and today is a day to get in and bargain-hunt."
Dell reaffirmed its forecast for its first quarter, but kept mum on the rest of the year due to economic and industry uncertainty. The direct seller of computers said low operating costs and its business model gave it an edge despite the overall slowdown in the sector.
Dell made the same forecast when it announced job cuts and fourth-quarter results on February 15.
Some fund managers warned the strong rally does not mean the ravaged technology sector is out of the woods just yet.
