US stocks rose yesterday after data showing soft retail sales for April lured investors back into technology and bank shares on hopes that there was an end in sight to the Federal Reserve's campaign of interestrate hikes.

The US government reported retail sales fell 0.2 per cent in April, the first decline in almost two years. Economists had expected a gain of 0.4 per cent and said the data indicated recent Fed increases in borrowing costs may have started to cool off the economy.

Technology and financial stocks shot higher, joining a rally in energy and utilities, boosting all of Wall Street's major equity indexes. Money shifted out of gold and paper producers, which were used as safe havens when technology issues were being pummelled earlier this week.

Intel, the world's computer-chip leader, boosted the Dow. Intel jumped $9.50 to $115.56 (€128.12) after unveiling a plan to build an Internet media business.