Stocks moved higher yesterday as investors moved to equities in droves with growing optimism the US economy may be turning the corner toward stronger growth, while grabbing shares at beaten-down prices.

"Fundamentally, most of these stocks have discounted the depth of the slowdown that we expect," said John Barlett, portfolio manager at Commerce Bank in St Louis, Missouri. "Earnings revisions may well stop going down pretty soon, and it may be that investors are getting some sense of that, and these stocks are beginning to stabilise."

The Nasdaq Composite Index soared 106.29 points to close at 1,852.00, while the Dow Jones Industrial Average jumped 257.59 points, to 10,102.74. For the Nasdaq, it was the strongest since March 28th, and the Dow's highest close since March 13th. Still, year-to-date the Dow is down 6.3 per cent and the Nasdaq off 25 per cent.