The Dow Jones industrial average built on Thursday's late momentum, gaining 115 points to finish at 9,504.78.
"We have had enough selling at this point that we are due for an oversold rally," said James Volk, co-director of institutional trading at D.A. Davidson & Co. "The question is--with consumer confidence as low as it is, investor sentiment as bad as it is and no earnings visibility--whether it's a trading rally or a bottom."
Intel shares moved up 13 cents to $28.81. Advanced Micro Devices gained $2.88 to $29.33. IBM closed up $4.58 to $93.68.
WebMD picked up 30 cents to $6.13 after topping estimates in the fourth quarter. SG Cowen Securities upgraded the stock to "strong buy" from "buy."
Shares of Red Hat rallied up 66 cents to $5.88 a day after the Linux company beat analysts' quarterly estimates and raised profit targets for fiscal 2002.
Microsoft shot up $2.56 to $56.56. Oracle inched up 38 cents to $15.88 and Sun Microsystems closed off 63 cents to $18.25.
Among widely held PC stocks, Dell Computer jumped $1.19 to $27.44; Gateway added 81 cents to $17.67; Apple Computer tacked on $1.38 to $23 and Compaq Computer closed up $1.10 to $20.50.
Micron Electronics slid 31 cents to $3.13 after it said it is exiting the PC business and merging with Web hosting company Interland in a $130 million stock deal that will transform the company into a hosting firm.
Data storage products company Adaptec issued its second profit warning this month, citing an oversupply of products in the hands of its distributors. The stock fell 47 cents to $9.16.
Yahoo clipped 44 cents to $14.44. AOL Time Warner gained $2.75 to $39.53 while eBay and closed up 56 cents and 9 cents, respectively. Amazon.com closed unchanged at $10.19.
Cisco Systems lost $1 to $18.75. Nortel Networks shed 79 cents to $17.40 and Lucent Technologies gained 53 cents to $11.62.
ZDII staff and Reuters contributed to this roundup.