US blue chips rebounded sharply in late afternoon trade yesterday as General Electric shot to a record high, helping the Dow shake off heavy losses in technology stocks.

The Dow Jones shot up 82.61, or 0.76 per cent, to 11,018.72, after rising more than 155 in late afternoon trading. The broader Standard & Poor's 500 index erased its losses and rose 0.79, or 0.05 per cent, to 1,508.

Investors racing out of beleaguered high-technology stocks and into more traditional stalwarts such as drug, retailer and consumer-related shares, also helped prompt a late rebound in the Dow, analysts said.

The technology-laden Nasdaq, however, remained sorely bruised after comments from leading equities strategists spurred profit-taking in technology shares. The index slid 189.22, or 3.91 per cent, to 4,644 after sharp losses on Tuesday.