Tech Stocks Extend Charge

Updated from 4:07 p.m. EST

Tech stocks found fresh momentum Wednesday, running higher on the back of Google(GOOG Quote) and a strong networking sector, while blue chips ended near their best levels of the day.

The Nasdaq gained 19.72 points, or 0.88%, to 2263.46, bringing its two-session gain to nearly 60 points. Google(GOOG Quote) rose 2.3% on a Bear Stearns upgrade, and Cisco(CSCO Quote) and Ciena(CIEN Quote) closed with 2.3% and 3.9% gains, respectively.

The Dow Jones Industrial Average rose 32.74 points, or 0.3%, to 10,880.15, and the S&P 500 was up 4.66 points, or 0.37%, at 1273.46. The close was a four-year high for the S&P.

About 1.83 billion shares traded on the New York Stock Exchange, with advancers beating decliners by a 12-to-5 margin. Trading volume on the Nasdaq was 1.92 billion shares, and advancers led decliners 2 to 1.

"The markets were able to build on yesterday's gains," said Michael Sheldon, chief market strategist with Spencer Clarke. "Market breadth was encouraging."

The 10-year Treasury was up 4/32 in price to yield 4.35% and is now 5 basis points above the yield on the two-year note. The dollar fell against the yen and the euro.

Oil prices continued higher after vaulting to a two-month high Tuesday. February crude, which got a 5% lift from a supply drama pitting Russia and the Ukraine, was up 28 cents to close at $63.42 a barrel on Nymex. Natural gas futures were down 44 cents to $10.19 per million British thermal units.

The broad averages took off Tuesday after minutes from the Dec. 19 meeting of the Federal Open Market Committee that suggested the current crop of interest rate hikes is nearing an end. The Dow rose 130 points for its best performance since October, while the S&P 500 and Nasdaq Composite had their biggest one-day point gains since April.

"The market is still feeling good after the Federal Reserve minutes yesterday," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "Between now and the end of the week, we have a lot of economic data coming out."