A huge short position and the resurgence of the high technology sector helped Wall Street stocks rally to a stunning close yesterday. The industrials posted their fourth biggest one day gain ever, according to analysts.

The Dow was up 92 points or 1.68 per cent, at 5,608. It was matched by the NASDAQ composite Index which soared more than 20 points, or 1.85 per cent to 1,117.

"A short squeeze, programme activity and trend followers stampeding into the market all at once drove us up," explained one analyst.