Stocks rose on Wednesday, after car-maker General Motors Corp and software-maker Intuit Inc said business was unlikely to get worse, and boosted hopes that recent interest-rate cuts are halting the slide in corporate profits.

"These are the first signs these rate cuts are going to start showing results here," said Michael Lyons, a listed equities trader for investment bank Morgan Stanley. "Any hint of good news is well received."

The gains came a day after the US Federal Reserve cut interest rates for a seventh time this year, and marked a dramatic change in investor sentiment.

Investors on Tuesday focused on the economy's weakness and pushed stocks to lows not seen since April.

Semiconductor equipment stocks jumped after an industry group report said the three-month average of worldwide bookings in July was 5 per cent above the revised June 2001 level, suggesting the battered industry may be seeing a turnaround.