The Dow Jones industrial average shot back into record terrain yesterday as another favourable reading on US inflation and some respectable profit reports by major companies fuelled a rally by blue-chip stocks.

The Dow rose 97.90 points - or 1% - to 9,110.20, easily beating last Monday's record of 9,033.23, the blue-chip barometer's first close above 9,000.

After the market closed, Intel announced it was cutting 3,000 jobs.

Advancing issues outnumbered decliners by a seven to four margin on the New York Stock Exchange, with 1,893 up, 1,105 down and 520 unchanged.

NYSE volume totalled 611.42 million shares, against 563.91 million in the previous session.

The Standard and Poor's 500stock list rose 6.06 to 1,115.75, and the NYSE composite index rose 3.54 to 581.31.

The Nasdaq composite index rose 18.08 to 1,843.03, and the American Stock Exchange composite index rose 1.54 to 739.86.