Technology stocks recovered partially from Monday's sell-off in New York yesterday, but the broad market failed to hold most of the gains amid mounting worries about company profits.

The Dow Jones industrial average fell 31.13 points - or 0.35 per cent - to 8,891.24 after sliding from an early 54-point gain to a 50-point loss.

Broad-market indicators were mixed, with the technology-laden Nasdaq composite index wiping out about half of Monday's 32point plunge.

Analysts said it was not surprising to see technology shares bounce following such a steep tumble, but few saw yesterday's rally as a turning point for the beleaguered group.

Even with yesterday's gain, the Nasdaq composite sits more than 150 points below the closing record of 1,917.61 set on April 22.

The Standard and Poor's 500 rose 2.05 to 1,093.03, and the Nasdaq composite rose 14.97 to 1,761.79.