WALL Street stocks climbed to record highs for the fourth session in a row yesterday after the Federal Reserve delivered a widely expected cut in short term interest rates.

The blue chip index dropped 30 points immediately after the Federal Reserve announced the cut, but quickly recovered.

The stock market has broken through record highs on Friday, Monday and Tuesday as investors anticipated an economy boosting rate cut.

The market stumbled a bit when the rate cut became reality, as some investors adopted the strategy of "selling on the news". But the market quickly regained its footing and sprang back into positive territory.

The rate cut was seen as stimulating an economy that many economists believe has weakened dramatically.

Lower rates can be good for stocks because they cut corporate borrowing costs and can boost earnings.