It rose 61.51 points, a gain of 2.9%, to 2204.43 while the Dow Jones added 28.92 to 10,591.22 and the Standard & Poor's 500 climbed 12.39 points to 1253.80 and is now just 24 points short of it 20 February close.
The Nasdaq rose with gains for Centaur Mining and Exploration up $2.81, as much as 84%, to $6.12, software provider Vignette rose $1.78 to 6.93 and Ulticom increased $5.81 to 25.37.
EMC, AOL Time Warner and Compaq led the leader board on the New York Stock Exchange climbing $4.4 to 43, $2.74 to 46.54 and $2.1 to 22.17 respectively.
Other gainers on the NYSE included Lucent up 72 cents to $13.1, Nortel $1.35 to 18.95 and Corning $1.45 to 31. Nokia declined half a dollar to $25.5.
In Wednesday morning trading the Asian markets rallied on the strength of the Nasdaq's buoyancy. In Japan the Nikkei 225 rose 0.2% with NEC Corp gaining. Hong Kong's Hang Seng lifted 5.28 to 14,326.33 with HSBC (the Hong Kong Shanghai Banking Corporation) and SHK Properties gaining 1% to HK$103.50 and 0.3% to HK$85.75 respectively on hopes that the US Federal Reserve will move to cut its base rate for the third time in as many months.
Australia's ASX200 closed up 0.9% to 3362 with global media group News Corp gaining 3.9% to $16.95 after the country's central bank the Reserve Bank cut its interest rate in an attempt to boost its slowing economy. Telstra increased 4.4% to A$6.73 following a 25% gain in first half profit. Net income for the six months to the end of December came in at A$2.62bn from 2.1bn a year ago. The Singapore Strait Times increased 0.8% to 1915.64 with tech stocks including Chartered Semiconductor, up 5.9% to S$5.40, gaining value.
Back home the UK's benchmark index the FTSE 100 yesterday climbed 80.7 points to 6012 - its highest close in two weeks. The pace of gains in London accelerated yesterday when the Nasdaq opened higher. The Techmark index rallied by 4.2% climbing 96.24 points to 2398.10.
Today is budget day and the business world keenly waits to see what Gordon Brown, the Chancellor of the Exchequer, has up his sleeve in what is likely to be the last budget before the country goes to the polls.
Interim results today include Canary Wharf, Morse and A& J Mucklow. When complete Analysts predict Canary Wharf's first-half year pre-tax profit will come in at £11m, a 45% increase on last year.
Companies posting their finals include Amec, Brittanic, Coats Viyella, Communisis, Glanbia, Holmes Place and Wealth Management Software.
Chris St John to take over £3bn UK Select Opps
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
Short-term noise or something sinister?