Business Notes FINANCIAL MARKETS

The stampede seemed to come from nowhere. In full defiance of such economic troubles as sagging real estate prices, weak corporate profits and the titanic savings and loan mess, investors in the U.S. and overseas have bullishly poured billions of dollars into the stock market during the past month. Last week the Dow Jones average broke the 2900 barrier for the first time, climbing 80 points and closing at 2900.97. All told, the Dow has risen 244 points since May 1 and has set record highs eleven times. The euphoria has spread far beyond the blue-chip Dow. The more broadly based Standard & Poor's 500 index rose 2.4% last week, to close at a record 363.16.

Investment analysts believe the rush to stocks has been sparked in part by the perception that the sluggish economy will be perked up by falling interest rates. As the Wall Street surge has built up steam, more and more small investors and mutual funds have jumped on the bandwagon for fear of missing the rally.

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