Nasdaq's soaring start for 2004

The Nasdaq symbolises the 1990s boom

The technology-heavy stock index which chronicled the hi-tech boom and bust of the past decade has leapt on the first full-scale trading day of 2004.

The Nasdaq Composite index climbed more than 2% on Monday to a two-year high comfortably above 2,000.

The Dow Jones index of bluechip stocks, meanwhile, added 1.3% or 134 points.

Investors took heart from a speech by Federal Reserve Governor Ben Bernanke, who promised low interest rates for the foreseeable future.

Strong sales of chips added to the bullish mood surrounding tech stocks, as did advice from software maker Siebel that its profits for the last quarter of 2003 would be 50% higher than expected.

The euphoria on Wall Street had earlier ensured gains for major markets in Europe, despite yet another slide in the value of the dollar against both the euro and the pound.

Bullish mood

The New York Stock Exchange had reopened for business on Friday after the New Year break, but trading had been thin and the day had ended with a fall.

But Monday saw most traders back at their posts, and as they rolled up their sleeves the buying mood took hold.

By the close, the Dow Jones - at 10,544.07 - was at its best level in 20 months, as was the S&P 500 when it finished at 1,122.22, a 1.24% gain.

The Nasdaq, meanwhile, ended the day up 40.68 points or 2.03% at 2,047.36.

It remains far below the peak hit in March 2000 of more than 5,000 points, at the height of the technology bubble, but the trough of 1,114 marked in October 2002 now seems long ago.

The Nasdaq's drive upwards was fed partly by Siebel, which rose 10% on its positive profit news.

And news from the chipmakers' industry group that sales were up 25% in November from the previous year also buoyed the market.