Stocks soared yesterday, propelling the Nasdaq Composite to its biggest one-day gain, after US central banker Mr Alan Greenspan hinted at interest rate cuts and the protracted fight for the White House appeared to be drawing to a close.

The Federal Reserve Board chairman said the Fed had to be alert to the possibility of excessive softening in the US economy - indicating a willingness to contemplate lower interest rates.

"It's very rare that we see him be as clear as he was today," said M&R Capital Management chief investment officer Charles Lemonides.

The Nasdaq's performance represented a big comeback for the index after a drop of more than 40 per cent from its March high. The index ended up 274.02 points, or 10.48 per cent, at 2,889.77.