BLUE-CHIP stocks rallied as interest rates eased in the bond market after Federal Reserve chairman Mr Alan Greenspan took a more soothing approach in delivering his assessment of the economy.
On Wall Street, the Dow Jones industrial average rose 93.13 points to close at 6,945.85, moving back within striking distance of 7,000.
Broader stock measures also rose after bond prices improved, sending interest rates lower, while Mr Greenspan delivered the second half of his semi-annual report to Congress.
With no major economic reports to bring the inflation outlook into sharper focus, investors spent much of the session awaiting this afternoon's appearance before the House Banking Committee by Mr Greenspan.
The Dow's biggest gainers were Boeing, Merck, DuPont and General Electric. Technology shares continued to show signs of recovery from the recent profit-taking in that high-flying sector.
Advancing issues outnumbered decliners by more than a five-to-three margin on the New York Stock Exchange, with 1,604 up, 947 down and 785 unchanged.
