Last week the tech-heavy Nasdaq hit its longest winning streak -- 12 straight days of gains -- since 1992. Though the markets were turbulent this week, on Thursday the Nasdaq and other major indexes hit their peaks for the year, and it's clear tech is leading the overall market comeback of the past few months.

Shares of computer and telecom companies on the Nasdaq are up about 41 percent for the year. The overall Nasdaq Composite Index rose 24 percent for the year. In contrast, the broad-based Dow Jones Composite Index of large companies is up 3 percent for the year and the Standard and Poor's 100 index is up 7 percent for the year.

Acquisitions and partnerships provided the most excitement in tech this week. Vendors often make acquisitions or partnership deals to ramp up quickly in a hot technology area they may be weak in. As such, an acquisition or partnership can be a sign of vendor confidence in a product or technology sector.

The deal between Microsoft and Yahoo generated the most headlines this week. The revenue-sharing agreement calls for Microsoft's Bing to run Yahoo's search site and for Yahoo to sell premium search advertising services for both companies, while the self-service ads will be powered by Microsoft's AdCenter. It was a long road to the deal from Feb. 1 last year, when Microsoft offered to buy the whole of Yahoo for US$31 per share, or about $44.6 billion.

The deal will not be fully implemented for two years, and first, the companies need the approval of regulators. Meanwhile,