The Nasdaq composite index soared to its first close above 5,000 yesterday as the technology stocks that dominate its ranks lifted the entire market and pulled the Dow Jones industrials out of a slump.

According to preliminary calculations, the Nasdaq composite index rose 149.37, or 3 per cent, to close at 5,046.63. Broader stock indicators also closed higher.

Surging shares of computer and telecommunications companies powered the Nasdaq as investors snapped up shares of the computer networking company Cisco Systems and the name-your-price retailer Priceline.Com.

The index briefly crossed 5,000 on Tuesday, but fell back as investors cashed in stocks to capture profits from its stunning rise this year. The Nasdaq smashed through its latest thousand-point milestone just 46 trading sessions after it first closed above 4,000. By contrast, it took the Dow nearly nine months to rise from 4,000 to 5,000 in 1995.