Technology stocks rose yesterday recovering from a two-day losing streak as bargain hunters bought beaten-down computer chip companies like Intel and personal computer makers like Dell.

The market was on pins and needles throughout the day, waiting for high-tech bellwether Cisco Systems to put out its results after the close.

The Nasdaq Composite Index gained 0.81 per cent after climbing more than 2 per cent earlier. The tech-packed Nasdaq bounced back after falling more than 4 per cent on Friday as investors worried about the slowing US economy and dwindling high-tech corporate earnings.

Cisco Systems, the most active issue on the Nasdaq market, was up $1.19 to $35.75. It was the last major tech company to report earnings in this quarter, which could leave this year's tech rally intact, analysts said.