THE Dow Jones ploughed toward 7,300 yesterday as investors, cautiously optimistic about the outlook for inflation and interest rates, focused on the biggest and best known stocks.

The Dow gained 123.22 points to close at 7,292.75, blowing past last Tuesday's record close at 7,225.32 and finishing less than 8 points shy of 7,300. The barometer of 30 big companies has now added 800 points in just one month, bouncing back from the depths of the market's recent slide.

Broadmarket indicators also posted sizeable gains, led again by the resurgent technology sector. The Dow's two biggest gainers were IBM and Hewlett Packard.

Stocks drew some support from the bond market, where the yield on the 30 year Treasury dipped to 6.88 per cent, down from late Friday's 6.89 per cent.

With no major economic reports to steer the session, bond traders maintained a positive stance before this week's figures on inflation and retail sales.