Investor obsession with "New Economy" stocks reached a fever pitch, undaunted by the threat of higher interest rates, to boost the Nasdaq composite index 1.9 percent to the magic 5,000 level in the first minutes of trading.

"This is the biggest, fastest move for a major index in the history of the market indices," said Scott Bleier, Chief investment strategist for Prime Charter Ltd. "It's a panic. It's a frenzy. And money managers can'T get technology stocks fast enough."The tech-driven Nasdaq eased back after striking its latest record, up just 59 points, or 1.21 percent, at 4,963. Still, the composite has soared 23 percent this year, climbing 1,000 points in nine weeks despite dropping twice falling more than 10 per cent from its highs in January.