Technology stocks rallied early Wednesday after the broader market gained and hopes for a Fed interest -rate cut sparked.

The Nasdaq Composite Index gained 65.96 by noon, rising 2.6 percent to 2,654.59 and the Philadelphia Semiconductor Index jumped 12.15, or 3 percent, to 422.69.

The tech sector surged with the broader market after a Federal Reserve official's speech raised expectations for another interest-rate cut next month.

Online retailers were boosted on news that this season's Cyber Monday - the busiest online shopping day of the year - hit a record $733 million in sales, raising hope that e-commerce giants will see strong holiday sales.

Ebay gained $1.64, or 5 percent, to $34.15 by lunch time, while Amazon gained $3.40, or 4 percent to touch $88.98.

While fears of a less than happy holiday season could still be justified in tradition retail, we believe that the momentum already apparent in online sales will result in a strong fourth quarter for both Amazon and Ebay, analyst Jeffrey Lindsay of Bernstein Research said in a research note.

Video game maker, Activision saw its shares continue to rise as the firm beat estimates, riding the success of its popular Guitar Hero III game. It jumped 84 cents, nearly 4 percent to $22.38.

Activision's larger rival, Electronic Arts, maker of Sim City, the Madden football franchise, and a number of other staple video game titles also saw an increase, gaining $2.22, or 4 percent to $57.32.