WALL Street stocks rallied, boosting the Dow Jones industrial average toward the 6,000-mark amid convincing signs that the US economy may be slowing enough to contain inflation without higher interest rates.

The financial markets rose sharply after news that the US unemployment rate edged higher last month from August's seven-year low.

The report offered the clearest evidence yet that economic growth is moderating enough to fight inflationary pressures such as rising production costs without the Federal Reserve needing to intervene.

Advances outnumbered declines by a 5-to-2 margin on the New York Stock Exchange, with 1,808 up, 728 down and 707 unchanged.