STOCKS are zooming into record territory on the prospects that the Federal Reserve will hold interest rates unchanged, and for now, investors are not overly worried that third quarter earnings growth could be the weakest in five years.

The mood on Wall Street was upbeat as the blue chip Dow Jones industrial average celebrated news that inflation was still in check, which should mean that the Fed will keep interest rates unchanged.

The Standard & Poor's 500 index jumped 3.44 points to a new high of 683.98.

The stampede to buy stocks accelerated with last week's news that the Producer Price Index edged up 0.3 per cent in August and the Consumer Price Index inched up just 0.1 per cent, confirming that inflation was still dormant. The central bank is expected to act on interest rates at the September 24th Fed meeting.