US technology stocks surged yesterday, driving the Nasdaq market to a record closing high and its biggest single-day point gain ever, as investors shifted money out of traditional sectors into "new economy" issues at a furious pace.

Expectations of higher interest rates did little to hold back companies whose fortunes are closely linked to the development of the Internet and wireless technology.

The Nasdaq composite index soared 168.16 points, or 3.84 per cent, to 4,550.28, surpassing its previous closing high of 4,548.92 on February 17th.

The broader Standard & Poor's 500 Index shook off its earlier losses and turned higher, finishing up 8.52 points, or 0.63 percent, at 1,360.69.