Blue chip stocks surged more than 130 points to close at a record high yesterday, as bond interest rates tumbled after US May payrolls data eased market fears of an interest rate hike by the Federal Reserve.

The Dow Jones industrial average rose 130.49 points to close at 7,435.78, surpassing its previous record of 7,383.41 set on May 27.

In the broader market, advancing issues led declines by about a 17-7 margin on volume of about 492 million shares on the New York Stock Exchange.

The Nasdaq composite index rose 14.80 points to 1,404.85.