The Nasdaq composite index rose 23.53 to 4,013.36, and the Standard & Poor's 500 index dropped 9.72 to 1,476.28. The Nasdaq last closed over 4,000 on April 11.
At the end of regular trading, Intel closed up $1.81 at $138.31, while Microsoft gained $1.25 to $74.94.
A federal judge this afternoon sent the Microsoft antitrust case for direct appeal to the Supreme Court. U.S. District Judge Thomas Penfield Jackson accepted a government petition that would, at least temporarily, remove the case from the jurisdiction of a federal appeals court.
The CNET tech index rose 9.59 to close at 2,937.42, with 52 of the 97 stocks in the index rising, 43 falling and two remaining unchanged.
Of the 18 sectors tracked, Internet content companies recorded the strongest gains, rising about 5 percent. Computer services providers were the day's biggest losers, sliding nearly 2 percent.
Digital Island posted significant gains on the Nasdaq. The shares jumped $10.69, or almost 31 percent, to $45.19. Volume topped 21 million shares, nearly nine times the stock's average daily volume.
The jump followed the company's announcement that it will receive $95 million from Compaq Computer, Intel and Microsoft to expand its global network for sending audio and video.
On the downside, Gadzoox Networks dived after the company warned that it would not meet analysts' expectations for the current quarter. The shares dropped $6.88, or 34 percent, to $13.44.
The Philadelphia semiconductor index rose 29.87 to 1,264.74, led by Micron Technology, which gained $7.89 to close at $89.38.
Shares of Red Hat closed up $4.81, or nearly 19 percent, at $30.19 after Dell Computer announced that it will make greater efforts to promote the Linux operating system to big business.