Technology stocks soared higher yesterday, carrying the Nasdaq composite index past 4,500 for the first time as the sector was untouched by a warning of higher interest rates from Federal Reserve chairman, Mr Alan Greenspan. Blue-chips, more vulnerable to interest rate concerns, closed lower, leaving the overall market mixed.

The Nasdaq composite index ended up 121.25 or 2.74 per cent at 4,548.90, surpassing its record close of 4,485.63, reached a week ago.

The Russell 2000 index, reflecting the performance of smaller company stocks including many hi-tech issues, rose 10.66 to 558.42, setting a closing record for a second straight day.

Presenting his twice-a-year report on the economy to Congress, Mr Greenspan said the Fed's four quarter-point increases over the past eight months had had little effect in slowing the economy.

He attributed his concerns about the economy to tight labour markets and the possibility that workers would begin to demand higher wages that could set off inflation.