A reverse in oil price rises also deflated much of an earlier rally, pulling energy shares lower and knocking a key support out from under the market.
The Nasdaq outperformed as shares of Apple Inc
Microsoft Corp
Investors also bet technology stocks would benefit from President-elect Barack Obama's proposed economic plan that would include the largest U.S. infrastructure investment since the 1950s. Many stocks have benefited from the prospect of such huge spending.
"The prospects are slightly better for producers of computerware. Tech stocks are also receiving a boost from the Obama initiative to spend on technology infrastructure," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Conn.
The Dow Jones industrial average <.DJI> rose 14.82 points, or 0.17 percent, at 8,967.71 and the Standard & Poor's 500 Index <.SPX> gained 2.94 points, or 0.32 percent, at 930.39. The Nasdaq Composite Index <.IXIC> added 12.90 points, or 0.79 percent, at 1,640.93.
Cisco Systems
(Editing by James Dalgleish)