THE big technology stocks surged yesterday in advance of IBM's earnings report, but the broad market wandered lower as interest rates rose, draining the momentum behind Tuesday's bluechip rally.

The Dow Jones industrial average dropped 20.87 points to close at 6,812.72, despite some more strong earnings reports among the blue chip barometer's 30 components.

The technology heavy Nasdaq market posted a sizable gain, but most market indicators edged down.

Few analysts found it surprising to see the market sputter after Tuesday's buying frenzy, which came without any significant news developments.

The Dow soared on Tuesday by 173 points, or 2.6 per cent, its second biggest point gain yet and its largest percentage gain since late 1991.

Broader measures failed to keep pace, however, casting doubt on whether the market was poised for a full recovery from its recent tumbles.