Blue-chip and technology stocks both posted strong gains Tuesday as the Nasdaq composite sprinted up 106 points to 1,851.96, while the Dow Jones industrial average gained 258 points to finish at 10,102.74.
"The pessimism is kind of reaching a crescendo," James Oberweis, portfolio manager at Oberweis Asset Management, told Reuters. "The sellers are pretty well played out, stocks are back to being reasonably valued and there's quite a bit of cash on the sidelines that doesn't want to miss the rally."
Tuesday's rally lifted virtually all technology sectors including the downtrodden Internet issues.
Yahoo (Nasdaq: YHOO) moved up 38 cents to $16.02 while AOL Time Warner (NYSE: AOL) and Amazon.com (Nasdaq: AMZN) moved up 54 cents and 83 cents a share, respectively, to $40.01 and $12.01.
eBay (Nasdaq: EBAY) gained $1.47 to $39.45, and CMGI (Nasdaq: CMGI) closed up 49 cents to $2.40.
Sonus Networks (Nasdaq: SONS) shot up $3.48 to $19.49 in anticipation of its earnings report. Analysts are expecting the company to beat estimates and give bullish projections.
RSA Security (Nasdaq: RSAS) tacked on $3.31 to $26.31 after it matched earnings expectations for the first quarter and announced a deal with a major cell phone maker.
Microsoft (Nasdaq: MSFT) gained $2.53 to $59.68. Oracle (Nasdaq: ORCL) picked up 92 cents to $14.97 and Sun Microsystems (Nasdaq: SUNW) closed up $1.61 to $14.65.
Getty Images (Nasdaq: GETY) hustled up $4.07 to $19 even though it warned its first-quarter results wouldn't meet Wall Street's expectations and said all previous financial projections aren't accurate.
Cypress Semiconductor (NYSE: CY) also gained ground, adding 94 cents to $16.34, despite warning it will miss lowered first-quarter estimates.
Intel (Nasdaq: INTC) rose $1.55 to $24.75. Advanced Micro Devices (NYSE: AMD) closed up $1.62 to $21.32 and IBM (NYSE: IBM) charged up $2.66 to $98.66.
Among widely held PC issues, Dell (Nasdaq: DELL) jumped $1.37 to $26.26, Compaq (NYSE: CPQ) added $1.24 to $17.35, Apple Computer (Nasdaq: AAPL) gained $1.50 to $22.04 and Gateway (NYSE: GTW) finished up 74 cents to $15.39.
ZDII staff and Reuters contributed to this roundup.