The tech sector added to trouble in the US markets yesterday when Intel, the world's biggest computer chip maker, warned of a tough year ahead, sparking concerns about the business spending and growth.
But in a turnaround highlighting the volatility of the market, optimism over the technology sector buoyed the Dow Jones Industrial Average, which opened 30 points, or 0.27%, higher at 12,247.34.
The Cisco Systems chief executive, John Chambers, last night brought some much need relief to the markets by saying he was more confident about the company's long term growth.
That optimism spilled over to today's trading, having helped to stem the losses brought on by the banking sector last night.
In a change from the string of gloomy data coming from the US economy, the stronger than expected service sector data brought more cheer to the market, driving the Dow to post a gain of 113 points, or 0.93%, at 12326.53.
The FTSE 100 continued to maintain this morning's strong trading. It was up 69 points, or 1.2%, at 5836.9.
On the broader FTSE 250, International Personal Finance appeared to be this afternoon's winner after beating forecasts to post a pretax profit of 26%.
Bill Barnard, an analyst at Dresdner Kleinwort, recommended the stock, writing in a broker note: "We see IPF as offering something different for those investors seeking to take advantage of growth offered by emerging markets and the secular long-term growth of financial services."
