Technology stocks rose yesterday, boosted by Morgan Stanley's bullish remarks on computer-network giant Cisco Systems, but bluechips slumped on news that worker productivity fell for the first time in six years.

"You've got a battle between the analysts' upgrades of some technology stocks which is helping Nasdaq . . . and what was some shockingly bad economic news with productivity down for the first time in six years, and average wages up a lot," said Uri Landesman, chief investment officer with money management firm AFA Management Partners.

On the economic data front, the US Labor Department said productivity for workers outside the farm sector fell at an annual rate of 0.1 per cent in the first quarter, well below analysts' expectations and fanning concern over the waning economy.