NEW YORK -- The Dow Jones industrial average jumped nearly 2.3 percent today amid news that inflation has remained mild despite persistent pricing pressures. Dow soars 175,
bonds riseThe Dow rose 174.78 points to close at 7,895.92, scoring its fourth biggest point-gain ever.
Advancers beat decliners by a 3-to-1 margin on the New York Stock Exchange, with 2,222 up, 7,55 down and 426 unchanged. NYSE volume was 635.77 million shares vs. 467.48 million yesterday.
Broader stock indicators also posted sharp gains, after the Labor Department reported that consumer prices rose just 0.2 percent last month.
The Standard & Poor's 500-stock list rose 25.87, or 2.8 percent, to 945.64, moving within about 15 points of its Aug. 6 record high. The NYSE composite index rose 11.09 to 493.69, less than 4 points from record territory. The Nasdaq index rose 33.68 to 1,668.60, beating last Tuesday's record close.
The Russell 2000 index of smaller companies rose 5.01 to 445.18, closing at a record high for the third straight session and 12th time in 14 sessions. The American Stock Exchange composite index, which is dominated by smaller companies, rose 5.39 to 680.05, its third straight record high and ninth in 11 sessions.
The consumer prices data ignited the bond market, where interest rates fell to their lowest level since July. The price of the Treasury's main 30-year bond was up 2 8/32 points, or $22.50 per $1,000 in face value, by late afternoon, while its yield fell to 6.40 percent from 6.57 percent late yesterday.