Stocks climbed yesterday, driving the technology-dominated Nasdaq market up more than 5 per cent, as new economic data revived hopes that the Federal Reserve may soon stop raising interest rates.

The rally was fuelled by news that the National Association of Purchasing Management's Purchasing Managers Index fell in May to a level well below the reading expected by economists. The NAPM also said the "prices paid" index, a closely-watched gauge of inflationary pressure at the production level, dropped for a second straight month.

Among the technology leaders to advance most was computer maker Hewlett-Packard which surged $14.81 to $134.94 (€144.89). Also climbing were Intel which gained $5 at $129.69 (€139.26) and Microsoft up $2 at $64.56 (€69.32).