Blue chips rose to a new record yesterday as investors continued last week's buying spree and shrugged off concerns about higher interest rates.

The Dow Jones Industrial Average ended with a gain of 45.59 points, or 0.50 per cent, at 9,192.66, eclipsing the record of 9,184.94 on April 21st. The broader market was mixed, with 1,522 gainers, 1,430 decliners and 486 unchanged. On the bond market, the average yield on 30-year Treasury bonds was at 5.935 per cent up from 5.925 per cent on Friday.

Analysts said investors would be watching Friday's unemployment report for indications on whether the US economy was overheating and in need of higher interest rates to cool down. Many are predicting the jobless rate for April will be unchanged at 4.7 per cent and that 275,000 jobs were created.

Mr Larry Wachtel of Prudential Securities said the market benefited from suggestions that Congress was moving to further cut capital gains taxes.

Rising markets in Europe, where the official launching of the euro boosted share prices, also helped Wall Street, with investors unmoved by the Franco-German battle over the presidency of the new central bank for Europe.

Oppenheimer chief investment strategist, Mr Michael Metz, said the stock market continued to be driven by internal momentum and not by fundamental factors.