Technology shares led a modest blue-chip advance, but most stocks in New York fell yesterday amid a mixed reaction to the latest interest rate cut by the US Federal Reserve.

The Dow Jones industrial average erased an early 29-point deficit and rose 54.83 points to 9,041.11, closing above 9,000 for the second time in three days after a three-month drought.

The afternoon rebound by the blue chips lifted most broad-market indexes, but declining issues still outnumbered advancers overall by the closing bell.

The Nasdaq market posted the biggest gains as several computer-industry bellwethers extended their rally and big-name Internet shares sprinted higher yet again.

The Standard and Poor's 500 rose 5.16 to 1,144.44, and the technology-heavy Nasdaq composite index rose 18.92 to 1,897.44.