Technology stocks rose for a third straight day yesterday, but blue chips staggered lower, as investors shifted money into high-tech shares in the hope that the worst is over for the battered group.

"It's pretty much A Tale of Two Cities today," said Richard Babson, president of Babson-United Investment Advisors, which manages $1.8 billion. "There's bottom-fishing in techs. People don't want to miss the upside . . . but on the Dow, some people are raising cash."

The Dow Jones industrials fell in the face of the tech sector's climb, closing down 0.8 per cent at 10,019.65. In doing so, Dow gave up some of yesterday's 257-point gain, which had enabled the blue chips to close above 10,000 for the first time since March 15th. The market's broader indicators finished the session mixed. The Nasdaq composite index rose 2.6 per cent, to 1,898.95, while the Standard & Poor's 500 fell 2.49 to 1,165.89.