Technology stocks led a sharp advance yesterday, with the Dow jumping back above the 8,000 mark just days after threatening to sink below its summer low of 7,400.

The Dow Jones industrial average rose 101.95 points - or by 1.3 per cent - to 8,001.47 after peaking at midday with a gain of 185 points.

The blue-chip barometer has now bounced more than 500 points from the bottom of a 274-point slide on Thursday, hopping back above this year's break-even point, 7,908.25.

Broader indicators also extended a rebound that began on Thursday as the Dow and other key measures sank toward lows reached in the market sell-off on August 31 and September 1.

The market has now reversed course several times at those levels, which have proven appealing to bargain hunters.