Wall Street rises on big-cap tech; banks weigh

US stocks rose on Monday, recovering from losses from earlier in the session, as investors snapped up large-cap technology shares hit hard by four weeks of losses.

Among the names boosting the S&P 500 were Apple Inc and IBM, which appeal to investors seeking stocks prized for strong growth potential despite economic conditions.

"The rebound is pretty much focused on buying into some of the safer issues," said Marc Pado, US market strategist at Cantor Fitzgerald & Co in San Francisco.

"There's value in the market, but very little faith in the government in dealing with the debt problem," he said. "People are sticking to the big names. No one is taking on added risk."

Bank of America shares fell 5.2% to USD 6.61, the biggest drop among the Dow's components as banks lagged. Late last week, Chief Executive Brian Moynihan sent a memo to senior executives outlining plans to cut another 3,500 jobs.

"The ground zero of all worries is financials," said Charlie Smith, chief investment officer of Pittsburgh-based Fort Pitt Capital Group.

Stocks have come under heavy selling pressure in recent weeks on growing fears of recession and the possible spread of the euro zone's sovereign debt crisis.

The Dow Jones industrial average rose 84.04 points, or 0.78%, to 10,901.69. The Standard & Poor's 500.