Greenspan views help Dow rally

 

WALL Street stocks staged a broad advance today, breaking a four day losing streak, after comments by Federal Reserve Chairman Mr Alan Greenspan were seen as holding out hope for a cut in interest rates.

The Dow Jones industrial average ended up 57.44 points to dose at 5,515.97. The blue-chip average rose more than 50 points in the morning, prompting the New York Stock Exchange to temporarily restrict computerised buy programs in an attempt to slow the advance.

Bonds rose this morning after Greenspan told the Senate Banking committee that the US economy has hit a "soft patch" but should grow moderately over the long term.

His remarks were seen as leaving the door open on a rate cut in March.

Both stocks and bonds gained despite Mr Pat Buchanan's victory in the New Hampshire Republican presidential primaries.