Tech stocks lead late US market rally

Technology stocks fueled a late-day rebound on US markets last night as investors picked through the wreckage of a market tossed…

Technology stocks fueled a late-day rebound on US markets last night as investors picked through the wreckage of a market tossed to its lowest levels in five years and scooped up battered shares like Intel Corp.

Investors funneled money into tech shares after three down days that pushed the Nasdaq Composite and the broad Standard & Poor's 500 to their lowest levels since 1997. Those two indexes closed up, but the blue-chip Dow Jones industrial average ended a bit lower as caution reigned after drug giant Bristol-Myers Squibb Co. became the latest target of federal scrutiny.

Wall Street's uncertainty made for a rocky session marked by steep losses and sudden rallies. The Nasdaq ended up 28.42 points, or 2.11 per cent, to 1,374.43, according to latest available figures, after falling 1.6 per cent earlier in the day. The technology-packed index had ended Wednesday at its lowest level since May 1997.

The Dow shed 11.97 points, or 0.14 per cent, to 8,801.53, after sinking more than 2.3 percent earlier and then clawing briefly into positive ground. On Wednesday, the blue-chip measure suffered its largest one-day percentage loss since September 2001.

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The S&P 500 gained 6.90 points, or 0.75 percent, to 927.37, after tumbling more than 2 percent. The broad market gauge hit its lowest level since October 1997 a day earlier.

Intel, up $1.44 at $18.25, helped lead the Nasdaq higher along with other semiconductor shares.

Doubts over corporate credibility still weighed on the market. Bristol-Myers Squibb lost $1.04 to $22.11 after saying it was under investigation by U.S. regulators, months after it disclosed sales tactics that inflated revenues late last year by $1 billion. The stock hit $19.49 earlier in the day, its lowest level since December 1995.

Yahoo Inc., the Internet media company, rose 73 cents to $12.92 after posting a second-quarter profit and higher revenues, with the help of new fees on services and raised its financial guidance for the year.