Morgan cited "a more bullish view" of the industry.

Technology shares have lagged as other stocks moved up last month, and investors greeted the news as a sign that the recovery was finally spreading to the tech sector.

A drop in oil prices helped feed buying in stocks, as investors hoped that crude futures would not pass $52 per barrel.

Investors were disappointed with the Institute for Supply Management's manufacturing index for February, which came in at 55.3, lower than the reading of 57 economists expected and down from January's 56.4.

However, those fearing inflation could see the report as good news, because a slide in demand for industrial goods bodes well for lower prices.

Some investors awaited Federal Reserve Chairman Alan Greenspan's testimony before the House Budget Committee today, hoping that the Fed chief's assessment of the economy will further boost stocks.

"I think we're doing pretty well here, but we'll see what Greenspan says tomorrow," said Bill Groenveld, head trader for vFinance Investments.

Advancing issues outnumbered decliners by almost 2 to 1 on the New York Stock Exchange.