NEW YORK (CNN/Money) - A surge of buying in semiconductor and financial stocks lifted U.S. markets Wednesday, with investors finding relief after two sessions of selling.

The Nasdaq composite (up 44.84 to 1419.35, Charts) gained more than 3 percent, while the Dow Jones industrial average (up 148.23 to 8623.01, Charts) and Standard & Poor's 500 index (up 17.41 to 914.15, Charts) both rose close to two percent.

"The tone was really good. Maybe it was just an absence of bad news and a lot of money on the sidelines. ...There's a ton of liquidity out there looking for the slightest excuse to get in," Ted Weisberg, a trader at Seaport Securities told CNNfn's Street Sweep. "But the market continues to be range bound. Although we had a good day today, it's after two down days and it's probably mostly technical."

After the close of trade Wednesday, computer products maker Hewlett-Packard (HPQ: up $0.30 to $16.85, Research, Estimates) issued its fiscal fourth-quarter results. The Dow component earned 24 cents per share, two cents better than what analysts were expecting and better than the 8 cents a share earned a year earlier. Shares of the stock gained $1.79 to $18.34 in after-hours trade Wednesday.

Thursday brings weekly jobless claims, the October reading of leading economic indicators as well as a few profit reports from some retailers.

Semiconductor stocks bounced higher Wednesday, giving the technology-fueled Nasdaq a lift. The Philadelphia Semiconductor index, or the Soxx, rallied more than 8 percent.

"The market's really got some power to it. It's strong across the board and there really aren't any big stock stories causing it," said Brian Finnerty, managing director at Melhado Flynn & Associates. "There's a lot of money out there that wants to be put to work and you're seeing that today. I think it's very healthy."

Soundview Technologies raised its price target on a number of chip gear makers, including KLA-Tencor (KLAC: up $3.03 to $39.82, Research, Estimates) and Novellus Systems (NVLS: up $2.17 to $34.03, Research, Estimates). Applied Materials (AMAT: up $0.79 to $15.86, Research, Estimates) and Intel (INTC: up $1.00 to $19.15, Research, Estimates) also gained.

Also helping the sector, chipmaker Analog Devices (ADI: up $1.81 to $29.81, Research, Estimates) reported a fourth-quarter profit of 16 cents a share that was in line with estimates, but up from a year earlier. Looking forward, the company said it expects to see a seasonably strong second quarter, assuming the first quarter conditions are favorable.

Other big cap technology stocks rallied as well, including Cisco Systems (CSCO: up $0.72 to $14.38, Research, Estimates), which got a lift after shareholders overwhelmingly rejected the idea of dividend payments, and Microsoft (MSFT: up $1.79 to $56.62, Research, Estimates).

IBM (IBM: up $3.24 to $81.61, Research, Estimates), a Dow component, rose after it said it will take $1 billion from its information technology and research budget and apply it to its new consulting and services division over the next three years.

Dow financials J.P. Morgan Chase (JPM: up $1.77 to $23.72, Research, Estimates), Citigroup (C: up $1.35 to $37.79, Research, Estimates) and American Express (AXP: up $1.28 to $38.54, Research, Estimates) rose within a broader push for the sector.

"The Nasdaq's up strong, the chips and financials are up and that appears to be a lot of the engine," said Douglas Altabef, managing director at Matrix Asset Advisors.

"There's no real compelling reason for stocks to be up," Altabef said. "But you've got little new news and there's an upward bias, so we're up today after a few days of selling."

Treasury prices fell, sending the 10-year note yield up to 4.06 percent from 3.99 percent late Monday. Treasurys prices and yields move in opposite directions. The dollar gained against the yen, and was little changed versus the euro.

Light crude oil futures rose 59 cents to $26.09 a barrel in New York. Gold was modestly lower.

Market breadth was positive. On the New York Stock Exchange, advancers beat decliners more than 2 to 1 as 1.49 billion shares traded. On the Nasdaq, winners beat losers by more than 2 to 1 as 1.78 billion shares changed hands.