Technology shares saved the day on Wednesday for markets in both Canada and the U.S. as oil prices back off from the feared US$50 level.

At the close, Toronto’s S&P/TSX composite was up 16.9 points or 0.2% to 8634.11, while the junior TSX Venture Exchange gained 15.13 points or 0.96% to 1598.49. In New York, the Dow industrial average climbed steadily in the afternoon to close up 58.84 points or 0.58% at 10136.24. The Nasdaq advanced 24.07 points or 1.29% to 1893.94, while the S&P 500 index was up 4.74points or 0.43% to 1114.8.

The Canadian dollar traded was up 0.15 of a cent to US78.75¢ in late trading as Statistics Canada reported manufacturers’ costs are going up due to higher energy prices. Manufacturers paid 20.9% more for raw materials in August compared with a year earlier, increasing the chance the Bank of Canada will raise interest rates next month.

On Bay Street, tech stocks led the way, gaining 1.83% as a group. Much of the jump came from Nortel Networks, which advanced 29¢ or 6.93% to $4.48. A newspaper report Wednesday said Nortel’s board of directors at was about to see a major overhaul as it faces internal squabbling and pressure from the company’s biggest shareholders.

Energy and gold shares were both off, down 0.63% and 0.32%.

On the energy side, oil prices fell sharply after the U.S. government reported inventories of crude rose by 3.4 million barrels last week, surprising many traders and analysts who had expected to see supplies shrink due to lingering output problems in the wake of hurricane Ivan. Markets were also comforted by news that the leader of the militia threatening to widen a battle for control of Nigeria’s oil-rich south said Wednesday he agreed to a tentative deal to end fighting in Africa’s leading petroleum exporter.

Light sweet crude for November delivery fell 75¢ to US$49.15 a barrel on the New York Mercantile Exchange, after rising above US$50 a barrel in overnight electronic trading.

Gold stocks were off, despite a slight gain in the price of the metal — up $1 to US$411 in London.

Financial issues were up 0.39%.

In Toronto, advancing issues outpaced declining issues 685 to 628. Volume on the TSX was 279 million.

In New York, robust gains by the tech-dominated Nasdaq led the way up, much of the buying provided by bargain–hunters. Part of the enthusiasm was over the potential acquisition of travel site Orbitz Inc. Buying in the chip sector, oversold after weeks of downgrades and third-quarter warnings, also buoyed tech shares. The Philadelphia Semiconductor index was up 1.9%.

Orbitz surged 31% or $6.40 to US$27.17 after media reports said the company could be purchased by travel, hotel and real estate conglomerate Cendant Corp. for $26 to $28 per share, pricing Orbitz at more than $1 billion. Cendant fell 16¢ to $21.86.

Investors also shrugged off a U.S. Commerce Department report that the economy grew at an annual rate of 3.3% in the spring, up from a previous estimate of 2.8%, but down significantly from the 4.5% rate of increase turned in during the first quarter.

Aerospace manufacturer Boeing Co. dropped $1.53 to US$50.79 after Bank of America downgraded the stock to “neutral” from “buy,” citing potential weakness in the international aircraft market.