Technology Stocks Give Market a Boost

Technology shares rallied, helping the American stock market recover from the steepest decline in three weeks and sending the Nasdaq Composite Index to its biggest advance in a year.

Intel Corp., Oracle Corp., and Dell Inc. led gains after Seagate Technology, the world's largest maker of hard-disk drives, boosted its profit and revenue forecast. Apple Inc. rose on speculation it will start selling new versions of the iPod. Exxon Mobil Corp. led 31 of 32 energy companies in the S&P 500 higher after crude oil prices reached a three-week peak.

The Standard & Poor's 500 Index climbed 31.4, or 2.2%, to 1,463.76. The Dow Jones Industrial Average increased 247.44, or 1.9%, to 13,289.29. The Nasdaq added 62.52, or 2.5%, to 2,563.16, its largest rally since June 2006.

The Dow average posted back-to-back moves of more than 200 points for the second time this month. The last time the average moved that much on consecutive days was in March 2003. Financial shares gained as traders increased wagers that the Federal Reserve will reduce its benchmark lending rate by 0.5 percentage point at its next policy meeting in September.

"There are a lot of good opportunities in the market right now," the chief investment officer at First American Asset Management in Birmingham, Ala., Joseph Keating, said. "Investors need to be stepping up to the plate."

All 10 industry groups in the S&P 500 advanced, with 482 of the index's members posting gains.