Technology stocks pushed the Nasdaq composite index to highs unseen in nearly two months as investors bet tech shares would benefit first from a resumption of healthy economic growth.

Commenting on Internet-gear giant Cisco Systems Inc., Wall Street brokerage Morgan Stanley said there were indications the large-corporation networking market in North America was stabilising, yet CSFB maintained a neutral rating on Cisco. Cisco shares jumped 12.4 percent, or $2.20, to $20, the highest since March 23rd.

Gains were fairly broad-based with tech shares extending a week-long up-trend. Decliners were concentrated in energy-related issues, pressured by sharp declines in crude oil and gasoline prices eroded by news of swelling petroleum supplies. Utility stocks also fell.