THE Dow Jones industrial average put in its second-biggest point gain ever yesterday as a tame US inflation report helped ease some interest rates fears that have plagued the market for the past month.

On Wall Street the Dow rose 135.26 points to close at 6,587.16, its best point gain since a 186.84 rally two days after the Black Monday crash of 1987.

Most broad-market indicators also rallied after news that consumer prices edged up a tiny 0.1 per cent last month, which was below forecasts and down from a 0.3 per cent rise in February.

Even with today's encouraging data, many investors still expect the inflation-wary Federal Reserve to raise interest rates again at its next meeting on May 20. At its March 25 meeting the central bank nudged a key lending rate higher to slow the pace of borrowing and spending.

Advances outnumbered declines by a 12-to-5 margin on the NYSE.