US stocks rose yesterday, led by a rebound in computer and Internet equipment issues, amid signs that investors decided a recent sell-off in the technology sector had been too severe.

Technology stocks dropped initially on concern that profit growth for some technology companies may be lower than expected in the second half. The sector bounced back to end higher by the close.

The rally was far from broad-based, however, as Wall Street remained jittery ahead of the government's release today of employment data for July, which is likely to yield clues as to whether the Federal Reserve will continue to jack up interest rates.

The technology-dominated Nasdaq Composite Index gained 101.34 points, or 2.77 per cent, to 3,759.80. It sprung back from early losses of more than 3 per cent.

The blue-chip Dow Jones industrial average, meanwhile, gained 19.05 points, or 0.18 per cent, to 10,706.58, lifted mainly by strength in its technology and financial services components.