Stocks rallied yesterday as investors focused on the cure for the slowing US economy, the expected Federal Reserve interest-rate cut this week, rather than the symptom - corporate America's earnings slowdown.

Technology stocks lead the advance, along with consumer cyclicals, despite networking giant Cisco Systems warning about its results, though the longer-term outlook has improved.

The Nasdaq Composite Index climbed 56.68 points, or 2.04 per cent, to close at 2,837.98, while the Dow Jones Industrial average added 42.21 points , or 0.40 per cent, to 10,702.19.