Markets rallied on Thursday afternoon. Techonology and gold stocks combined to lead the S&P/TSX composite index up 16.15 points to close at 6,737.43.

The information technology sector rose nearly 1%, while gold issues added 1.4%.

Tech bellwether Nortel Networks led the trading volume with 42.5 million shares changing hands. Nortel shares rose 5¢ to close at $3.66 ahead of its after-hours earnings report.

Nortel reported a fourth-quarter net loss of US$248 million, but beat analysts estimates.

Gold stocks surged as gold futures hit a new six-year high — up US$4.80 to US$364.70 an ounce

Barrick Gold Corp. closed up 81¢ at $25.36, while Placer Dome rose 15¢ to $17.80.

The junior TSX Venture Exchange advanced 0.24 points at 1,126.68.

In New York, the Dow Jones industrial average gained 50.74 points to close at 8,369.47 after trading in the red for most of the session.

The Nasdaq composite index rose 28.79 points to close at 1,388.27. The S&P 500 gained 8.98 points to 884.38.

The Canadian dollar rose US0.27¢ to US65.57¢.