Around the World's Markets: New York

THE DOW JONES index rose to a record as stocks rallied for a second day on optimism that the Federal Reserve will not boost interest rates beyond the quarter percentage point expected at today's policy meeting. The Dow rose 199.15, or 1.8 per cent, to 11,299.76, its first record close since 16 July.

"Stocks are gaining as fear of higher and higher interest rates is waning," said one analyst.

The Nasdaq index climbed 71.24, or 2.7 per cent, to 2,719.57.