Technology stocks shot higher yesterday, as investors bet the traditionally higher-growth sector would benefit more quickly than nontech shares from the Federal Reserve's five interest-rate cuts, aimed at firing up the US economy.

The Nasdaq Composite Index closed at its highest since late February. The benchmark Standard & Poor's 500 rose for the sixth consecutive time.

"The expectation is CEOs of tech companies are going to start whistling a different tune, saying business is dismal but not as dismal. That gives investors light at the end of the tunnel that the profit recession is going to end," said Hugh Johnson, chief investment officer at First Albany Corp.

Among individual issues, consumer products giant Procter & Gamble, dragged the Dow down, losing $2.23 to end at $65.25. P&G said it agreed to buy the Clairol hair-care business from Bristol-Myers Squibb Co. for $4.95 billion in a deal that will offer a leading position in the hair-care products market. Bristol-Myers dropped 71 cents to $55.29.