Stocks in Toronto made it to the Friday finish line on a welcome positive note. The Toronto Stock Exchange’s S&P/TSX composite index climbed 165.81 points, or 2.85%, to 5,978.66. Today’s climb was the market’s second-straight push higher after heavy losses early in the week.

Tech shares were in the limelight again. The sector climbed 6.76%, after Lehman Brothers raised its rating on IBM. The investment bank is predicting that spending on information technology will improve in 2003.

Nortel Networks announced that it is standing behind its third-quarter sales target, and hinting at further job cuts. That’s good news for investors seeking stability – though disheartening for the Nortel workforce. The company’s shares rose 6¢ to 75¢. A ripple effect was felt among the high tech industry. Celestica Inc. added $1.95, or 10.9%, to $19.90. Zarlink Semiconductor Inc. jumped 58¢, a whopping 24.6%, to finish at $2.94.

Investors also warmed after a Statistics Canada report that 40,700 new jobs were created in September. This lowers concern about a slowing economy, and it’s certainly good news when there seems to be a drought on anything positive. Shares have plummeted to four-year lows in recent sessions. Earnings warnings and the U.S.-Iraq showdown have plagued the markets.

All 10 TSX subgroups finished higher on Friday, led by the financials sector. It rose 3.26%, after Toronto-Dominion Bank added $1.73 to close at $29.25. Canadian Imperial Bank of Commerce climbed $1.60 to $36.60.

The good news continued on the S&P/TSX venture capital index, which rose 15.65 points to 906.26.

In the U.S., stocks soared too, for a second day. It was a crucial bright spot, breaking several weeks of losing sessions. IBM was the biggest beneficiary of today’s about-face. It added 11% and led the Dow Jones industrial average higher. General Electric came close on IBM’s heels, adding 7%.

The Dow added 316.34 points, or 4.20%, to 7,850.29. It’s been awhile since the Dow posted such significant back-to-back gains — March 16, 2000 to be precise.

The Standard & Poor’s 500 index rose 31.40 points, or 3.91%, to 835.32. The Nasdaq composite index jumped 47.11 points, or 4.05%, to 1,210.48.