Stocks in Toronto closed higher on Monday. The Toronto Stock Exchange S&P/TSX composite index closed up 111.25 points, or 1.76%, at 6,432.65.

Market momentum was positive as 599 issues advanced, 475 declined and another 212 were unchanged. Volume was a heavy 220.9 million shares traded.

All 10 of the TSX’s subgroups closed higher. The market was led by a 4.8% climb among the technology stocks and a 3% jump in financial stocks.

Investors are expecting the U.S. Federal Reserve cut interest rates on Wednesday to assist a the American economy. Microsoft Corp. boosted the tech sector jump when it announced that a U.S. judge upheld its antitrust settlement.

Nortel Networks Corp. have risen more than 200% since Oct. 10. Today, the former market darling added another 14¢, or 7%, at C$2.08. Graphics chips maker ATI Technologies Inc. rose 31¢, or 3%, to $10.72. Telus Corp. finished the day up $2.24, or 17%, at $15.25, after topping quarterly expectations.

Banking stocks climbed today but they could take a hit tomorrow. After the market closed, Toronto-Dominion Bank, announced that it has increased its loan loss provisions.

South of the 49th parallel, stocks sizzled but went cold as news about preparations for a possible war with Iraq came out. The Dow Jones industrial average finished 53.96 points, or 0.63% higher, at 8,571.60. The Nasdaq composite index added 35.84 points, or 2.63%, to 1,396.54.