The Dow Jones industrial average picked up 58 points to finish at 10,031.28 after Wednesday's 317-point plunge knocked it below 10,000 for the first time since October.
Analysts credited this to some bargain-hunting and the surprisingly resilient performance of Asian markets after Wednesday's meltdown.
However, few analysts were willing to predict a particularly bright future for emotionally scarred investors.
"I don't think we're out of the woods yet. I think there will be still more tears and pain and torture before a serious reversal can take place," said Peter Cardillo, director of research at Westfalia Investments.
Nokia helped out the tech sector when it reiterated its projections for first-quarter growth while simultaneously warning that sales are slowing. Its shares gained $3.15 to $24.95 as investors applauded the report--mainly because they had been expecting much worse news after recent warnings from Motorola, off 8 cents to $14.41, and Ericsson, down 6 cents to $5.84.
Among widely held PC stocks, Dell Computer clipped 25 cents to $24.13; Gateway fell $1.18 to $14.91; Apple Computer shed 75 cents to $19.69, and Compaq Computer picked up 25 cents to finish at $18.60 ahead of its profit warning.
Oracle lost $1.31 to $14.75 ahead of its quarterly report. Microsoft trimmed 31 cents to $53.69, and Sun Microsystems ended down 38 cents to $18.06.
Ciena moved up $1.50 to $54.88 after executives made some upbeat comments during an investment conference Thursday.
Cisco Systems inched up 6 cents to $20.31. Lucent Technologies pushed up 2 cents to $11.04, and Nortel Networks closed up 53 cents to $15.90.
Nextel Partners gained $1.69 to $14.75 after the company reiterated its 2001 financial forecasts. The company's partner, Nextel Communications closed off 88 cents to $13.75 after it warned Wednesday that it would miss its first-quarter numbers.
Yahoo shares lost 31 cents to $15. America Online Time Warner gained 55 cents to $40.59, while eBay and Amazon.com rose 63 cents and 38 cents a share, respectively. CMGI shares slid 28 cents to $3.
Shares of SanDisk fell $1 to $19.88 after the company said its first-quarter numbers would be "significantly lower" than expected because of a slumping economy and customer inventory corrections.
Intel shed 56 cents to $28.50. IBM tacked on 60 cents to $95.56, and Advanced Micro Devices closed off 34 cents to $23.60.
Staff and Reuters contributed to this report.