Led by big names such as Intel and Dell Computer, and also by less-famous names such as Qualcomm and Adobe Systems, the tech-heavy index withstood a late-day sell-off that at one point threatened to pull it back below the 3000 level.

What is dazzling investors, or giving them pause, depending on how skeptical they are, is that the Nasdaq composite now has more than doubled in value from early October last year. It is up 113% in less than 13 months. Other major indexes also advanced, as did bonds and the dollar.

The Dow Jones Industrial Average, less technology-oriented, put on a weaker 27.22 points, or 0.26%, to close at 10609.06. "At some point," said Michael Weiner, portfolio manager at Banc One Investment Advisors in Columbus, Ohio, highflying technology stocks may get ahead of themselves, and resemble "the cartoon character who runs off a cliff and doesn't realize he has run off the cliff until he looks down."

Network-equipment maker Cisco Systems, for example, continues to trade at more than 100 times its earnings for the past 52 weeks. Qualcomm, which makes wireless-communications systems and Internet products, sells for 330 times trailing earnings. But investors are saying "that technology is the future of the country," Mr. Weiner noted, and "it gives you a lot of comfort to buy successful companies."

With the world recovering from last year's deadening slump, analysts are forecasting heavy demand for technology products, and that has driven the Nasdaq composite ahead.

Although traditional investors doubt the gains can continue unabated, the technology hopes are overwhelming short-term worries about the Y2K computer bug, the risk of another Federal Reserve interest-rate increase on Nov. 16 or the ability of stocks to sustain such lofty prices.

Asian stocks surge
Most Asia stock markets surged on Thursday, with Tokyo shares closing above 18,000 for the first time in three weeks, and Seoul and Hong Kong stocks closing up almost three per cent.

Thai stocks broke two resistance levels to end up more than four percent. Tokyo's key Nikkei index closed up two per cent at 18,348.13.

"The Nasdaq's record high close is definitely the main factor today," said Hitoshi Ichio, a strategist at Commerz Securities. Hong Kong's Hang Seng index was driven 2.97 per cent higher to its 13,651.51 finish by solid buying in heavyweight China Telecom and a good response to the government's Tracker Fund, which closed its retail initial public offering.