Technology stocks rallied yesterday, a day after the Nasdaq skidded to a five-week low, but blue-chips fell amid a parade of earnings disappointments and lowered forecasts from companies with household names.

Semiconductor stocks led the tech gains, as the bright spot was chip-equipment maker Applied Materials, , which gained $5.63, or 13.5 per cent, to $46.81.

Applied Materials warned about its growth going forward, but got a boost from brokerage JP Morgan Chase, which raised ratings on Applied and others in the group to "long-term buy" from "market perform".