WALL Street stocks shot higher yesterday as bonds jumped on the latest signs of tame US inflation pressures, sending interest rates to their lowest level in months.

The Dow Jones industrial average rose 34.29 points to close at 6,007.02 - down from a 60-point afternoon rally, but enough to break back above 6,000.

Despite the allure of lower interest rates, the hesitant tone that has dominated the stock market over the past week was too strong to sustain a broad advance. Fearing unexpected jolts from this week's barrage of economic data many investors have been taking profits on the market's record-setting gains.

Blue-chip shares opened higher with bonds after Washington reported that employment costs grew a smaller-than-expected 0.6 per cent in the third quarter.

A private research group later reported that consumer confidence in the economy retreated in October.