U.S. stocks rise on energy and tech

NEW YORK (Reuters) - U.S. stocks rallied on Wednesday, as investors found value in beaten down technology shares and energy shares rose on higher crude oil prices, while European markets fell on fears about a deep global recession.

A fresh wave of weak U.S. economic data drove safe-haven buying in U.S. government bonds and lifted the U.S. dollar.

U.S. durable goods orders plummeted in October and business activity in the Midwest withered to the lowest level since the severe 1982 recession. A separate report, showed sales of newly built U.S. homes dropped sharply in October and were running at levels last seen more than 17 years ago.

"Overall, the U.S. numbers this morning all have a negative tone to them and that should keep risk aversion higher," said Shaun Osborne, chief currency strategist at TD Securities in Toronto.

The European Commission on Wednesday proposed a 200 billion euro (168 billion pound) stimulus package aimed at giving the floundering economy a boost, following the U.S. Federal Reserve's $800 billion effort to bolster credit and mortgage markets unveiled on Tuesday.

China also cut interest rates by 1.08 percentage points, a move aimed at ensuring liquidity in the banking system and supporting economic growth.

But the positive reaction to the financial resuscitation efforts and perceptions of some value in stocks which are now at multi-year lows were offset by concern about the cost to governments of the banking system bailouts and economic stimulus plans being announced around the world.

In U.S. equities markets, the Nasdaq index .IXIC rose 4.60 percent, outpacing gains in the other major indexes, as value investors bought shares of big-cap technology companies betting that Tuesday's sell-off was too far, too fast.

"People are pricing in a lot worse information and at these stock market levels ... there might be some buying coming into the market," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois of the U.S. stock market.