NEW YORK (CNNfn) - An alliance between two technology giants, IBM and Dell, sent bulls on a rampage Thursday, overshadowing concerns about rising interest rates and briefly taming investors' anxiety over the upcoming February employment report.
Shortly before 1:30 p.m. ET the Dow Jones industrial average rallied 154.58 points, or 1.6 percent, to 9,430.46. Volume on the New York Stock Exchange reached 460 million shares, with advances leading declines 1,621 to 1,154.
The Nasdaq Composite surged 33.14 to 2,298.34, a gain of 1.3 percent. The S&P 500 index gained 15.73, or 1.2 percent, to 1,243.43. (Click here for a look at today's CNNfn market movers)
Bonds were slightly lower, stung by the weekly jobless claims report, which once again showed fewer people than had been expected filed for jobless benefits last week. The report, seen as a precursor to Friday's February employment-data release, wiped out the market's modest early gains, leaving the benchmark 30-year Treasury bond trading 1/32 of a point lower in price for a yield of 5.69 percent.
The dollar, however, soared to a three-month high against the yen overnight and extended its gains in U.S. trading after Tokyo once again shrugged off the yen's recent decline. The greenback also climbed to a lifetime high against the 10-week-old euro overnight and remained strong in U.S. trading.
Techs shining bright
Rallying technology stocks helped lift the broader market, aided by news of a $16 billion technology deal between two of the industry's largest players, IBM (IBM) and Dell Computer (DELL).
Shares of both companies soared as investors learned Big Blue is to supply Dell with storage, microelectronics, networking and display technology for use in Dell-built computers. The seven-year deal, believed to be the largest of its kind in the high-tech industry, also includes broad patent cross-licensing between the two companies and collaboration on the development of new technology.
Shares of IBM, a Dow component, surged 7-1/4 to 174 on the news. Dell, the most actively traded Nasdaq issue, jumped 2 to 82-15/16.
Most other technology stocks also gained ground, but some of Dell's and IBM's major competitors showed signs of nervousness in early trading. Shares of Dow member Hewlett Packard (HWP) fell 1-1/4 to 67-9/16, Gateway (GTW) eased 1/2 to 68-5/8, and Compaq Computer (CPQ) was 3/8 lower at 33-1/2.
However, Cisco Systems (CSCO) climbed 2-7/8 to 98 and Intel (INTC) gained 9/16 to 115-1/4. Gruntal & Co. upgraded Intel and fellow chip maker Micron Technology (MU) to "strong buy" from "buy."
Microsoft (MSFT) traded 1-7/8 higher at 151-1/2, after announcing the launch of a new e-commerce venture called BizTalk and the acquisition of online comparison shopping service ComparaNet.
Elsewhere among high-tech stocks, shares of Web site management firm Verio (VRIO) surged 6-3/16, or more than 19 percent, to 38-11/16 on news the company had worked out an agreement to market its services through America Online (AOL).
And shares of Metronet Communications (METNF) soared 3-9/16 to 48-11/16 on news the company will join forces with AT&T Canada in a $7 billion merger. AT&T (T), a member of the Dow 30, will own 31 percent of the new AT&T Canada when the deal is completed.
Financials get attention
Helping back up the technology rally, financial stocks advanced strongly, despite fears of rising interest rates ahead of the February jobs report Friday.
Shares of Dow component American Express (AXP) rallied 2-1/2 to 110-5/16 after Salomon Smith Barney started coverage of the stock with a "buy" rating and a price target of $135 a share. Calling the stock "underappreciated," analyst William Ryan said he believes American Express faces a smaller interest-rate risk than many investors believe.
Fellow Dow member Citigroup (C) climbed 1-7/16 to 59-5/16 and J.P. Morgan (JPM), also one of the 30 Dow stocks, traded 1-1/4 higher at 113-11/16. 
-- by staff writer Malina Poshtova Zang
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