Wall Street's traditional summer rally began on cue yesterday, with the Dow Jones industrials and the Nasdaq composite index gaining more than 200 points apiece as investors returned from the Memorial Day weekend in search of bargains. Technology and telecoms shares led the gains as investors sought out stocks that have been battered recently. But volume was light, suggesting that investors remain wary.

"Will the rally stick? I wish I could say yes, but with this surprisingly low volume, I'm not sure it will be extended through the rest of the week," said Robert Stovall, market analyst at Prudential Securities.

The Nasdaq composite rose 254.21 points to close at 3,459.32, the largest percentage gain yet for the index and the second-largest point gain to date. The Dow Jones industrial average rose 227.89 points to close at 10,527.13. Broader stock indicators were also higher. The Standard and Poor's 500 rose 44.43 to 1,422.45.