Microsoft leads way to record high

Stocks advanced strongly today as Microsoft and an array of hot Internet companies rocketed the Nasdaq to a new record high.

At the close on Wall Street, the Dow Jones industrial average was up 54.33 points - or by 0.6 per cent - at 9,070.47.

The technology-heavy Nasdaq composite index rose 37.43 to 2,040.59, beating the old record of 2,016.44 set on November 27. The Nasdaq is now up 29 per cent for the year, an increase twice as high as that of the Dow.

Microsoft's strong showing may be explained by South Carolina's withdrawal from the antitrust suit against the software-maker. The defection from the group of 20 states that sued Microsoft Corp marks a victory for the Redmond, Washington-based company.

The Standard and Poor's 500 index also rose, up 11.00 at 1,187.74.