Stocks climbed yesterday, after sales warning was dispelled by several factors, including bottom fishing by investors looking for battered down shares.

The Dow Jones Industrial Average rose 50.09 points, or 0.48 per cent, to close at 10,455.76, according to the latest data, while the Nasdaq composite index jumped 38.92 points, or 1.96 per cent, to 2,023.24. The Standard & Poor's 500 index added 12.49 points, or 1.05 per cent, at 1,202.98.

Initially, the Nasdaq and Dow each fell more than 1 per cent, then began a steady ascent that accelerated through the afternoon.

Lance Zipper, managing director of equity trading at Brean Murray & Co, attributed the turnaround to short-covering, investors looking for bargains, and programme buying.