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New York - The tech-rich Nasdaq Composite Index rallied on Tuesday, leading the market to its first day of gains after three straight losses.
The Nasdaq jumped 33.23 (0.81%) to 4,112.99.
The Dow Jones industrial Average advanced 10.27 (0.06%) to 16,256.14, while the broad-based S&P 500 rose 6.92 (0.38%) to 1,851.96.
Analysts said it was too soon to say if Tuesday's rally meant the tech sector had stabilised.
Nasdaq has been in retreat since early March due to concerns Facebook, Tesla Motors and other high-flying stocks are overvalued.
The Nasdaq has lost 5.5% of its value since March 6. Over the same period, the Dow fell 1.0% and the S&P 500 lost 1.3%.
Art Hogan, chief market strategist at Wunderlich Securities, said the tech sector had become "oversold."
Enjoying the rebound Tuesday were Facebook (+2.2%), Tesla (+3.8%), Amazon (+2.9%) and Google (+3.1%).
But biotechnology stocks, which have experienced some of the heaviest selling over the past two weeks, continued to show weakness. Gilead Sciences fell 3.1% and Biogen dropped 2.8%.
Nike led the Dow higher, rising 3.0% after it was upgraded by Stifel Nicolaus.
Chipmaker Intel reportedly will shut its Costa Rica plant, eliminating 1 500 jobs. Shares rose 1.6%.
Pharmaceutical giant Eli Lilly slipped 0.1% following a big punitive-damages award against the company and its Japanese partner Takeda Pharmaceuticals for hiding the cancer risks of the Actos drug for diabetes.
A jury found Takeda owes $6bn in punitive damages and Lilly owes $3bn. But Lilly said its agreement with Takeda indemnifies it against losses in the US litigation. Both companies plan to contest the award.
Bond prices rose. The yield on the 10-year US Treasury declined to 2.68% from 2.70% on Monday, while the 30-year dipped 3.54% from 3.56%. Bond prices and yields move inversely.
