The Nasdaq composite closed with a gain of 82.89 points (2.21 per cent) at3,839.26, and the Dow Jones industrials rose 77.29 points (0.72 per cent) at10,812.86. The Standard and Poor's 500 rose 13.52 points (0.93 per cent) at1,471.36.

On the bond market, the yield on the 10-year Treasury bond eased to 6.114per cent from 6.127 per cent and on the 30-year bond fell to 5.884 percentfrom 5.909 per cent.

Yields and prices move in opposite directions. Dealers said markets werehesitant most of the day due to cautionary remarks by Federal Reserveofficials saying that more data was necessary before it could be concludedthat the pace of US economic growth is slowing.

But technology shares got a boost from gains in IBM, which jumped more thanseven per cent following positive comments by Goldman Sachs.

James Volk at DA Davidson said that gains in IBM, which closed 7-15/16higher at 120-5/16, "spilled over" into other shares in the sector,supporting a late rally on the Nasdaq. Goldman Sachs analyst LauraConigliaro said: "We believe that there are beginning to be multiple pointsof evidence that are indicating that IBM is improving and that shouldcontinue and accelerate."

Microsoft closed 7/8 higher at 70-1/2 ahead of a ruling in its antitrustcase. Dealers and analysts said they did not expect a strong reaction to theruling, as an expected breakup of the company has been priced into themarket.`

After the market close, Judge Thomas Penfield Jackson ordered the companyto split into two entities. Hewlett-Packard closed up 4-9/16 at 122-9/16,taking support from IBM.

The company said it formed a global strategic E-commerce alliance withIntershop. Dell gained 9/16 to 45-1/4, Apple gained 3-11/16 to 96-9/16,Gateway added 1-11/16 to 54-1/2, while Compaq edged 1/8 lower to 27-1/16.AMD lost 3-1/2 to 87-3/16. Juniper Networks surged 23-5/16 to 224-11/16 onpositive analyst comments, while Cisco added 1-9/16 to 62-7/8 despitelawsuits filed by Alcatel for alleged patent infringement.