US stocks surged yesterday as investors pocketed technology shares which had been battered to year-lows earlier during a rough October.

Investors applauded a better-than-expected showing from French telecom equipment giant Alcatel, which posted a 109 per cent rise in quarterly profits and boosted its growth outlook for the year.

The Dow Jones industrial average rallied 135 points, or 1.24 per cent, at 10,970, climbing higher for the fourth session in row.