Stocks soared ahead in New York yesterday as technology shares bounced backed from their lows and investors refocused on a morning report showing continued strength in the US economy.

Stocks opened higher as investors cheered the Commerce Department's report showing a better-than-expected 5.6 per cent rise in fourth-quarter gross domestic product.

But the market was dampened by a report from the Purchasing Management Association of Chicago that showed manufacturing declined in the Midwest in January.

Also pressuring stocks early today was a slump in technology shares, which fell on profit taking.

By midday, however, the buyers were back in the market looking for deals on technology stocks, and attention was again focused on the positive GDP report.