US blue chips closed with modest gains yesterday as long-term interest rates moved to their lowest level all year. Technology stocks raced higher, led by telecommunications companies in the wake of the blockbuster merger news between WorldCom and MCI Communications, and the technology-laden Nasdaq composite index closed at a record high.
The Dow Jones Industrial Average gained 12.03 points to 8,027.53, up 0.15 per cent.
"The bond market is amazingly strong. Equities have expected the long bond to go this low for some time, which is why bonds are so strong and stocks are only responding slightly," said Mr Henry Herrmann, chief investment officer at Waddell & Reed.
Volume was light, at about 400 million shares, due to the religious Jewish holiday Rosh Hashanah and a key jobs report due today.
The Nasdaq Composite surged to a record high, gaining 12.07 to 1,702.37, its first close over the 1,700 level.
