Stocks strode higher yesterday as investors grew more confident that the US Federal Reserve would soon come to the economy's rescue by cutting interest rates again. "The scenario of a sooner rather-than-later interest-rate cut is capturing the imaginations of investors and fund managers alike," said Mr Ned Riley, chief investment strategist at State Street Global Advisers.

The blue-chip Dow Jones industrial average leaped 199 points, or 1.92 per cent, to end at 10,640, based on the latest numbers. The broader Standard & Poor's 500 Index climbed 22 points, or 1.75 per cent, to 1,268. The technology-laced Nasdaq Composite Index also swung higher after a brief retreat into negative territory, climbing 46 points, or 2.02 per cent, to 2,308. But corporate profit warnings from Texas Instruments, the No. 1 maker of computer chips for mobile phones, and consumer products giant Procter & Gamble, however, helped keep the market's rally in check.