By CAROLYN CUI (WSJ)

Benign economic readings helped stocks reverse course after a two-day losing streak, while leaving expectations intact that Federal Reserve is likely to deliver more rate cuts next week.

The Dow Jones Industrial Average surged 196.23 points, or 1.5%, to 13444.96, more than reclaiming its losses over the past two sessions. The S&P 500 index gained 22.22 points to 1485.01, while Nasdaq Composite Index gained nearly 2%, or 46.53 points, to 2666.36, helped by large-cap tech stocks' bounce.

Giant tech firms were among the day's winners; Dow components Intel and Microsoft reaped considerable gains. Intel jumped by 3.5%, and Microsoft advanced 4.2%. Some analysts attributed the gains for large tech companies to their distant association with the financial turmoil. "They seem to be an area where investors view as less risky and less involved in the credit crisis," said Michael Pento, senior market strategist at Delta Global Advisors.

*The excerpt above ran in the "Today's Market" column. WSJ.com subscribers can access the full article by clicking here.