Stocks rallied yesterday, rebounding to levels before the September 11th attacks on the United States sent the market reeling, as upbeat corporate results ignited hopes for better days ahead.

Companies like General Electric and online brokerage E-Trade Group announced results that met or beat analysts' estimates, despite a weakening economy and a sharp drop in stock trading. Wall Street also is betting the Federal Reserve's nine interest-rate cuts this year will soon help jump-start the lagging economy.

"After the attacks, people were worried about the near-term impact on earnings, but now that we're getting the results, they either aren't as bad as anticipated or they're coming in even better," said Mr Mark Foster, portfolio manager and chief investment officer of Kirr, Marbach & Co.

A surge in computer chip and chip-equipment stocks also hoisted the technology-laced Nasdaq Composite Index above pre-attack levels. The index gained 75.21 points, or 4.62 per cent, to 1,701.47.