NEW YORK - The Dow Jones Industrial Average has set a record, reaching levels not seen since the peak of the technology boom more than six years ago.
The index, the most potent symbol of the American stockmarket's virility, climbed to 11,758.95 yesterday, more than eight points ahead of the
previous mark set in January 2000.
And the Dow's close was also a record, up 56.99 points to end at 11.727.34, ahead of its 11,722.98 close in January 2000.
The move into virgin territory - after almost a week of flirting with the record - puts the strength of shares back in the public spotlight after several years when investor faith was shaken by corporate scandals, terrorism and the long post-dotcom bear market.
Experts say that it could prompt the return of the domestic private investor, after years when they have chosen to put their cash in emerging markets funds and commodities.
"It's a psychological boost. I would feel better if the [wider] S&P 500 [index] was hitting a new intra-day high, but I think it's meaningful to retail investors," said Scott Wren, senior equity strategist at AG Edwards.
Yesterday's surge by the Dow - which is dominated by old-economy industrial stocks - was fuelled by developments in the commodities markets, where crude oil's recent sell-off accelerated.
That lowers energy bills for business, and will help lower the price of petrol, whose recent peak threatened to choke off consumer spending.
Oil tumbled more than US$2 yesterday to below US$59 a barrel, its lowest level since February.
Stockmarket traders believe prospects are good for the third-quarter earnings season, when companies will report their latest results.
- INDEPENDENT, REUTERS
