Wall Street hits new high

Press, 22 September 1983, Page 24

Wall Street hits new high

NZPA-Reuter New York

Wall Street stock prices closed at record levels yesterday as a belief that interest rates might fall brought institutional investors back to the market in droves. The Dow Jones industrial index closed up 15.25 points at 1249.19, bettering its record close of 1248.30, set on June 15.

Analysts said investors were encouraged by signs that the Federal Reserve Board (“Fed”) might be adopting a more accommodating stance on interest rates.

“The ‘Fed’ has sent up smoke signals that they are easing their policy,” said Mr Sidney Lurie, an executive vice-president of Josephthal and Company, the investment firm. “The stock market is in a major uptrend,” he said, adding that he expected the Dow to soon rise 100 points.

Analysts said falling interest rates encouraged investors to keep bidding for stocks in a busy session on Wall Street. Interest rates have declined in the credit markets in the last two days, aided by speculation that the “Fed” might be ready to relax its credit policy. Some analysts said it appeared that the “Fed” was satisfied that its recent efforts to slow the growth of the money supply had succeeded, and did not wish to risk stalling the economic recovery by keeping credit tight much longer. Brokers also said money managers at investing institutions might be buying stocks to make their portfolios look better before they make their quarterly reports at the end of this month.

The Dow Jones industrial index has gained 34.15 points in the last three sessions.