US stocks rose after semiconductor maker Intel Corp said business from computer makers has started to improve, encouraging investors that sales may pick up across the industry.
International Business Machines Corp, which reports profit later today, Dell Computer Corp and Compaq Computer Corp advanced. Texas Instruments Inc, whose chips are used in two-thirds of the world's cellular telephones, rose after posting results that beat scaled-back forecasts.
The NASDAQ Composite Index surged 80.44, or 4.2 percent, to 2,003.66. The Standard & Poor's 500 Index gained 14.14, or 1.2 percent, to 1,205.95. The Dow Jones Industrial Average climbed 93.76, or 0.9 percent, to 10,310.49.
The NASDAQ has rallied 22 percent since April 4, when it touched a year-to-date low, on optimism that the slowdown in technology profits may be waning. The Philadelphia Semiconductor Index has gained 32 percent since April 4.
Four stocks rose for every one that fell on the NASDAQ Stock Market, while more than three advanced for every two that declined on the New York Stock Exchange.
Intel rose US$3.05 to US$29.09. The No. 1 chipmaker reported first-quarter sales that beat reduced forecasts and said second-quarter sales will be better than some analysts expected as business from personal-computer makers started to pick up in March.
Advanced Micro Devices Inc, Intel's main competitor in microprocessors, surged US$2.10 to US$25.10 on Instinet. Dell gained US$1.57 to US$27.92. The No. 1 direct seller of personal computers has surged 51 percent this year. Compaq climbed 67 cents to US$19.