TECH STOCKS: Nasdaq Tops 2,000 To Hit 10-month High; Techs Gain

By Benjamin Pimentel

Technology stocks advanced Thursday morning, as the Nasdaq Composite Index topped the 2,000 mark for the first time since October 2008.

The Nasdaq (RIXF) gained more than 35 points, or about 2%, to 2,006. The last time the tech-heavy index was at that level was in October last year.

"I think one of the factors driving it is the interest in tech at this point in the cycle," analyst Crawford Del Prete of International Data Corp. said in an e-mail interview. "Tech was beaten down early, and the perception that as the down cycle passes, tech will bounce."

But he also cautioned, "I think the market is getting ahead of reality, as the underlying demand for tech does not feel as strong as the market might indicate."

The chip sector was a main driver once again as the Philadelphia Semiconductor Index (SOX) rose more than 2%, on gains from Intel Corp. (INTC), Advanced Micro Devices (AMD) and SanDisk Corp. (SNDK)

But tech's other big guns also pitched in, as shares of Google Inc. (GOOG), Microsoft Corp. (MSFT), Dell Inc. (DELL) and Apple Inc. (AAPL) posted solid gains.

One of the exceptions was Symantec (SYMC), which lost more than 11% a day after the security software maker posted a sharp drop in quarterly profit.

Yahoo (YHOO) also shed more than 4%. The Web portal continues to feel the fallout from its search deal with Microsoft, which many on Wall Street are calling a disappointment relative to expectations.