STOCKS extended their record breaking rally for a second session in a row yesterday before ending with moderate gains as the outlook for low interest rates kept the bulls charging ahead.

The Dow Jones industrial average ended 42.72 points higher at 7,478.50, the second straight record finish for the blue chip index.

In the broader market, advancers outpaced decliners 1,414 to 1,087 on volume of 465.6 million on the New York Stock Exchange.

Though the session lacked the sheer firepower displayed Friday - when the Dow jumped 130.49 points - it brought the Standard & Poor's index of 500 stocks and the New York Stock Exchange, American Stock Exchange and Nasdaq composites to all time highs.

Leading the rally among blue chips were technology and drug stocks, as investors focused on the potential export benefits of a weaker US dollar.