NEW YORK (CNNfn) - Microsoft -- a big reason behind the Nasdaq composite index's rout this spring -- can now take some credit for the gauge's revival.
The Nasdaq came within 6 points of wiping out all its losses for the year Wednesday, thanks to an 8 percent surge in shares of the world's biggest software maker.
Despite the statistical drama, analysts described a mostly listless trading session marked by uncertainty over whether rising interest rates -- already blamed for hurting corporate profits -- will take a further bite out of earnings in the months ahead.
 "There's really no conviction," said Kenneth Sheinberg, head of listed trading for SG Cowen. "The market is churning. That's all it's doing is churning."
Most analysts expect the Federal Reserve next week to hold interest rates steady, a phenomenon that's generally good for stocks. But few are willing to say the Fed's campaign of credit tightening is over.
Sheinberg expects the market to stay within a trading range in the months ahead until the direction of borrowing costs and the state of corporate profits becomes clearer.
The Dow Jones industrial average also gained as Microsoft's jump countered losses in Citigroup, J.P. Morgan and American Express.
The Nasdaq rose 50.65 points to 4,064.01, its fifth gain in as many sessions. The rise put the index ever so close to the 4,069 mark it closed at on Dec. 31, 1999. The Nasdaq went on to climb as high as 5,048 in March and then plunged to 3,164 in May, before beginning the rise that led to Wednesday's action.
 "These is certainly some life in the Nasdaq stocks," Ken Tower, director of technical research at UST Securities, told CNN's Street Sweep. "The heavy growth story is getting some play."
The Dow, meanwhile, rose 62.58 points to 10,497.74. For those who like numerology, the day had plenty to offer. The Dow Jones industrial average is now down exactly 1,000 points for the year. On the New York Stock Exchange, 999 million shares traded.
The S&P 500, meanwhile, gained 3.18 to 1,479.13, pushing it up 0.6 percent for the year.
Despite the gains, more stocks fell than rose. Declining issues on the NYSE edged out advancing ones 1,605 to 1,257. Losers topped winners on the Nasdaq by 1,985 to 1,970, on volume of more than 1.5 billion shares.
In other markets, the dollar rose against the euro and yen. Treasury securities fell.
Microsoft resurgent
Microsoft (MSFT: Research, Estimates) jumped 5-3/4 to 80-11/16, its highest level since early April, after the judge in its antitrust case delayed a series of restrictions placed on the company.
In a potential negative, the judge also recommended that Microsoft's appeal go straight to the Supreme Court, bypassing the appeals court that many observers say could be sympathetic to the software maker. But investors focused on the positive implications for Microsoft, whose stock has often acted as a proxy for the Nasdaq.
"The decision being expedited is good news," said Art Hogan, chief market analyst at Jefferies & Co. "There's light at the end of the tunnel."
Microsoft shares reached their highs near $120 earlier this year when the Nasdaq soared to its all-time peak. The company's antitrust troubles, which ultimately led to an unfavorable ruling, erased billions of dollars from its market value and came amid a broad technology swoon.
Larry Jones, market strategist for Kenwood Group in Chicago, told CNNfn's Market Coverage that the high-growth technology companies now resume the kind of leadership they once held. (422K WAV) (422K AIFF)
 Two large tech firms announcing bad news ended well off their lows for the day. After falling to as low as 80-5/16, Oracle (ORCL: Research, Estimates) rose 5/32 to 86-3/16 by day's end. The maker of database software reported better-than-expected fourth-quarter quarter earnings of 31 cents per share. But Oracle's revenue -- $3.4 billion, up $2.9 billion a year earlier -- disappointed some investors.
Merrill Lynch, saying it is concerned about the high price of Oracle stock, downgraded its immediate-term opinion to "accumulate" from "buy." Oracle shares jumped 475 percent in the last 52 weeks.
Another key tech issue, Intel (INTC: Research, Estimates), rose 11/16 to 139, well above its intra-day low of 136. The world's biggest chipmaker said late Tuesday the circuit board recall it announced early last month will cost it $200 million in the second quarter.
Intel and Oracle have run up considerably in recent weeks, with some analysts warning that even slight disappointments could lead to a pummeling by investors.
 Among the pummeled, Honeywell (HON: Research, Estimates) rose 5/16 to 36-15/16, reversing only a fraction of the 27 percent loss that came after the technology conglomerate warned Monday that its second-quarter earnings would disappoint Wall Street. Honeywell is not alone -- at least 19 companies this week have said they won't meet profit forecasts.
Financial stocks declined. Citigroup (C: Research, Estimates) shed 1-3/8 to 63, J.P. Morgan (JPM: Research, Estimates) fell 1-3/8 to 118-11/16, and American Express (AXP: Research, Estimates) lost 1-3/8 to 52-5/8.
OPEC boosts production
In one of the week's most awaited decisions, OPEC agreed Wednesday to boost production modestly to about 700,000 barrels per day, or 3 percent.
The boost, which came in close to expectations, should take pressure off the cartel. The Clinton administration wanted to bring down gasoline and oil prices, which rose to a two-month high last week. Crude oil for August delivery rose 72 cents to $31.45 a barrel.
ExxonMobil (XOM: Research, Estimates), the world's largest oil producer, rose 11/16 to 83-15/16. 
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