Dow near record high

Wall Street surged today, carrying the Dow Jones industrials to their second-best close yet, as positive economic data further buoyed a growing sense of optimism among investors. The Dow closed just 53 points from its record high close.

Stocks, particularly the blue chips, moved higher after the Conference Board said its consumer confidence index for September rose more than expected, reaching 104.5 from a revised reading of 100.2 in August. Analysts forecast the index would rise to 103.

Also bolstering investor enthusiasm was a report from the Federal Reserve Bank of Richmond that showed the region’s economy strengthened this month. The bank’s manufacturing index came in at 9 versus 3 in August.

Jack Albin, chief investment officer with Harris Private Bank, said the market’s advance reflects widespread investor enthusiasm and a realisation that the Federal Reserve might have room to ease short-term interest rates. He pointed to low inflation and the recent nearly 20% retreat on oil prices.

“The Fed has a lot more elbow room to lower rates. The Fed could maybe even lower this year.”

The Dow gained 93.58, or 0.81%, to 11,669.39. The Dow’s advance put it within range of its high of 11,722.98 set in January 2000.

Broader stock indicators also jumped sharply. The Standard & Poor’s 500 index rose to a five-and-a-half-year high, increasing 9.97, or 0.75%, to 1,336.34 and the Nasdaq composite index rose 12.27, or 0.55%, to 2,261.34.