DOW UP 184 POINTS AS BROADER INDEXES ALSO CLIMB SHARPLY.Byline: Eileen Glanton Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Stocks soared Friday as a new government report suggested inflation remains in check, raising hopes that the Federal Reserve need not be aggressive in raising interest rates to cool off the economy. The Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. rose 184.26 points to close at 10,973.65, a gain of 1.7 percent. For the week, the blue-chip index gained 259.62 points. Broader stock indicators were also sharply higher. The Standard & Poor's 500 rose 29.52 to 1,327.68, and the Nasdaq composite index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed rose 88.32 to 2,637.81. Investors have been nervous for weeks about the likelihood that Fed policy-makers will raise interest rates for a second time this summer when they meet Aug. 24. There also are fears of a third rate increase this fall if the economy shows signs of overheating Overheating An economy that is growing very quickly, with the risk of high inflation. . The small advance in wholesale prices reported Friday, if matched at the consumer level, could ease concerns somewhat at the Fed about a potential breakout of inflation. ``We will hold to the view that the Fed will tighten,'' said Michael Moran, chief economist at Daiwa Securities America Inc. But he said various components of the survey indicated that inflation may never make its way to U.S. consumers, and should mollify mol·li·fy tr.v. mol·li·fied, mol·li·fy·ing, mol·li·fies 1. To calm in temper or feeling; soothe. See Synonyms at pacify. 2. To lessen in intensity; temper. 3. the Fed. The brighter outlook on interest rates powered a strong rally, especially in the technology and financial services sectors. Leading the Dow industrials were American Express, up 4.9375 at 134.6875, and J.P. Morgan, up 6.25 at 133.75. On the Nasdaq, Microsoft rose 2.9375 to 84.6875 and Intel advanced 3.8125 to 79.75. Recently battered Internet stocks also gained, with search engine Yahoo rising 4.4375 to 132.8125 and online auction firm eBay rising 6.625 to 98 on Nasdaq. America Online rose 4.125 to 96.875 on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Those companies have faltered in recent weeks under the threat of higher rates. Investors buy those shares on the promise of strong future growth, and higher rates reduce the value of future earnings. Advancing issues outnumbered decliners by a 2-to-1 margin on the NYSE NYSE See: New York Stock Exchange . Composite volume totaled 829.85 million shares, compared with 887.90 million in the previous session. CAPTION(S): Box Box: MARKET WATCH |
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