Shares ended the day higher on Wall Street on Thursday after a sharp rebound in technology stocks lifted the broader market.

Investors ignored worries about corporate profits and Friday's unemployment data. The technology sector was spurred by relief that Intel did not issue a second quarter profit warning.

The Dow closed 66.76 points higher at 8870.56. In the broader market, the Standard and Poor's 500 index ended up 12.10 points at 1094.83.

The tech-laden Nasdaq, which led the late improvement, closed up 27.64 points at 1769.95.

The rally easily cancelled the Nasdaq's 19 point loss on Wednesday, when fears that Intel may issue a profit warning damaged sentiment.

Gains in stocks came despite a sharp drop in bonds after a surprise interest rate hike in the UK. Bonds were also anxious ahead of Friday's key May payrolls data.

Wall Street economists expect payrolls in May to rise by 221,000 compared with a 262,000 increase in April. The unemployment rate was expected to edge up to 4.4% from 4.3% in April.

Intel closed up 2 4/16 at 68 3/16. Other technology stocks also notched up solid gains, with Dell Computer closing up 4 1/4 at 84 1/2. IBM rose 2 3/16 to 116 1/16.

Another merger in the telecommunications equipment sector stoked merger hysteria.

France's Alcatel Alsthom agreed to buy Dallas-based DSC Communications for $4.4bn in stock.