Stocks Climb; Dow Near Record High; Blue-Chip Average Up 84; Nasdaq Rises 5
The Dow Jones industrial average closed today just 37 points shy of its all-time high, capping a roller-coaster week that tested the market's resilience to renewed fears over higher interest rates.</br></br>Interest rate worries, which sent investors fleeing from stocks Monday, began to subside as new batches of economic data made it increasingly likely the Federal Reserve would not feel compelled to raise rates at a scheduled meeting next month. A key business gauge released today offered more signs of muted inflation.</br></br>The average of 30 blue-chip stocks jumped 83.70 points, or 0.9 percent, to 9147.07, a day after soaring 112 points on the first batch of good inflation news. For the week, it was up 82.45 points. Today's close put the Dow back within just 37 points of its record close at 9184.94, set on April 21.</br></br>"You have had two major shifts in psychology, going from bullish to bearish on Monday, and back to bullish with the economic statistics on Thursday, and the bond market acting better," said James Volk, co-director of institutional trading at D.A. Davidson & Co.</br></br>The National Association of Purchasing Management said today its closely watched purchasing managers' index fell to 52.9 percent last month from 54.8 percent in March, hinting at a slowing economy. But the report also said that prices paid by manufacturers kept declining, offering further heartening signs of subdued inflation.