Shares of computer makers rose Tuesday after the Federal Reserve cut a key interest rate to a range of zero to 0.25 percent in another attempt to buoy the sinking U.S. economy.

The new target range is the lowest since 1954, when tracking of the federal funds rate began.

The Federal Reserve last lowered the funds rate - the interest rate banks charge each other on overnight loans - by a half-point to 1 percent on Oct. 29. Since then, home building has continued to slow and job losses have mounted, and the National Bureau of Economic Research declared the economy has been in a recession since last December.

The technology sector is grappling with slowing consumer PC sales in the U.S. and other developed markets, and decreased spending on computers and software by business customers.

In a Dec. 1 research note, UBS analyst Maynard Um wrote that he expects PC shipments worldwide to fall 2.4 percent in 2009, compared with overall growth of 14 percent this year, as buyers wait longer to replace older machines.

Rates on home equity loans, credit cards and other consumer loans are expected to drop in response to the Fed's rate, and investors Tuesday were betting those cuts will prompt consumers and small businesses to start spending again.

Shares of Round Rock, Texas-based Dell Inc. jumped 63 cents, or 5.7 percent, to $11.76 in afternoon trading after the central bank's announcement.

Hewlett-Packard Co.'s stock added $1.28, or 3.9 percent, to $36.10.

Investors sent Apple Inc.'s shares up $1.10 to $95.85, reversing losses from earlier in the session.

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