Technology stocks fought back Tuesday as the Nasdaq composite shot up 172 points to 3,138.24. The Dow Jones industrial average gained 164 points to 10,681.06.
Although the outcome of the presidential election is still unknown, investors simply couldn't resist some of the bargains in the tech sector.
"My feeling was the rally was overdue and that's what I told people in the morning meeting," said Ned Collins, vice president of U.S. stocks for Daiwa Securities America. "We were so oversold . . . but still there are a lot of questions out there. There are questions about earnings shortfalls. There are questions about the presidential election."
Goldman Sachs' influential strategist Abby Joseph Cohen did her best to spark the rally, suggesting that equity valuations are looking the most attractive they have been all year and that the S & P's 500 Index is undervalued by 15 percent looking ahead for the next 12 months.
Intel (INTC) moved up $2.75 to $40.94 while Advanced Micro Devices (AMD) and IBM (IBM) gained 44 cents and $2.06 a share, respectively.
Qualcomm Inc. (Nasdaq: QCOM) gained $5.31 to $80.38 after it announced it will put $500 million into Qualcomm Ventures, a new organization that will invest in startup companies to support the adoption of CDMA technology and drive usage of the wireless Internet.
Oracle (Nasdaq: ORCL) closed up $3.63 to $28.38 after announcing an agreement with Citigroup (NYSE: C).
Sun Microsystems (SUNW) shot up $8.69 to $94 and Microsoft (MSFT) finished up $2.38 to $68.81.
America Online (AOL) inched up 83 cents to $49.90. Yahoo! (YHOO) surged up $4.13 to $59.44 while Amazon.com (AMZN) and eBay (EBAY) rose $1.13 and $4.81 a share, respectively.
USInternetworking Inc. (Nasdaq: USIX) jumped $1.25 to $5 after inking alliances with Microsoft (Nasdaq: MSFT) and Aether Systems (Nasdaq: AETH), up $18.56 to $108.25. The company also secured more $300 million in equity and credit financing.
CMGI Inc. (Nasdaq: CMGI) gained 31 cents to $14.81 on news that the company will sell off its iCast and 1stUp.com businesses. The company plans to reach profitability by the end of fiscal 2001.
MicroTouch Systems (Nasdaq: MTSI) shares gained $5.69 to $20.56 on news that Minnesota Mining and Manufacturing (NYSE: MMM) will purchase the company for around $160 million.