Stock market bulls shredded the harness of the US economic slowdown yesterday as unexpected interest-rate cuts by the Federal Reserve set off a stampede that left the Nasdaq market with its largest gain since its creation in 1971.

Stocks shot higher immediately after the news from the Fed. The announcement was what Wall Street wanted - a rate reduction to kick start the flagging economy.

Amid record trading volume, the Nasdaq composite index soared 324.82 points, or 14.17 per cent, to close at 2,616.56, the largest ever point and percentage gain for the technology-loaded market barometer. It was the highest close for the composite since December 18th.

The Dow Jones Industrial average jumped 299.60 points, its eighth largest point rise ever, to 10,945.75. It was the Dow's highest close in nearly two months.