North American stocks look headed for a sharp decline at Wednesday’s open, as the markets reverse course in response to tech bellwether Cisco Systems’ cautious forecast.

Cisco reported a 41% gain in fiscal fourth-quarter profit late Tuesday, but warned that it is taking a cautious view of technology spending in the months ahead.

Markets surged Tuesday as investors cheered responded to the U.S. Federal Reserve Board’s quarter-point interest-rate increase and the central bank’s mostly positive comments on the economy.

In Toronto, the S&P/TSX 500 composite index closed up 47.82 points, or 0.58% to at 8,231.26.

On Wall Street, the Dow industrial average posted its biggest point and percentage gain in two months.

The Dow gained 130.01 points, or 1.32%, to finish at 9,944.67. The S&P 500 index was up 13.82 points, or 1.30%, at 1,079.04. The technology-laced Nasdaq composite index was up 34.06 points, or 1.92%, at 1,808.70.

Asian markets closed mostly higher overnight, with prices in Tokyo rising on the Federal Reserve’s reassurance of U.S. economic growth but falling in Hong Kong on worries over higher interest rates and oil prices.

Tokyo’s Nikkei closed up 95.91 points, or 0.88%, at 11,049.46 points.

In Hong Kong, the blue-chip Hang Seng Index fell for a third straight day, ending 64.91 points, or 0.52%, lower to 12,343.13.

In Wednesday’s economic news, the International Energy Agency said the world oil market is tight and uncertain, but it questioned whether soaring prices were justified while supply still exceeds demand. “Limited spare production capacity combined with security warnings and headline news about Russia, Iraq, Venezuela, China and monthly employment, industry activity and confidence statistics are propelling the market,” the Paris-based agency said in its monthly report.

Oil prices remained near record highs Wednesday.

Crude oil for September delivery was at US$44.55 a barrel in after-hours trade Wednesday on the New York Mercantile Exchange, easing from Tuesday’s record of US$45.04 a barrel.