Blue-Chip stocks rose yesterday after a report of moderate inflation calmed investor fears about higher interest rates, but the renewed optimism failed to lift technology stocks, which slumped following a profit warning from Dell.
At the close of trading on Wall Street, the Dow Jones industrial average was up 88.65, or 0.9%, at 10,204.93, extending its gain of 96.57 on Monday. The index had fallen back from an earlier gain of 219 points.
Advancing issues outnumbered decliners by an 8-to-7 margin on the New York Stock Exchange, with 1,630 up, 1,425 down and 478 unchanged.
NYSE volume totalled 900.04 million shares as of 4 p.m. against 798.13 million in the previous session.
The Russell 2000 index of smaller companies rose 2.03 to 410.93.
A persistent fear that inflation is on the rise has sent stocks plunging in recent weeks, driving the Dow 10.7 per cent below its August 25th record close. Investors fear rising inflation will prompt the Federal Reserve to raise interest rates for the third time this year in a bid to slow economic growth.
