Nasdaq made a sharp recovery yesterday, ending the day with a record one-day point gain, according to Reuters.

Nasdaq nosedived on Friday last week, dropping 410 points in a mass sell-off of technology stocks.

Yesterday, however, Nasdaq technology shares soared, boosting the composite index by 217.87 points, or 6.65 per cent. This was largely driven by the rebounding stocks of Intel, Cisco and Sun Microsystems. The computer-chip sector soared, recouping nearly all of Friday's losses.

A chief investment strategist at State Street Global Advisors explained the activity: "What's happening is people are cautiously dipping back into the water but doing it with brand names and companies that have solid revenue and earnings growth."