STOCKS staged a broad advance in New York as interest rates eased to their lowest level in two months after new indications of moderate economic growth calmed inflation worries.

The Dow Jones industrial average jumped 65.84 points to close at 5594.75. Earlier, the blue chip barometer broke above 5600 for the first time since last month's steep downturn sent the Dow tumbling.

Broad market measures also rallied with the bond market after a July survey of industrial purchasing managers revealed weaker than expected growth in the manufacturing sector.

Despite the enthusiasm, over the purchasing managers report, however, investors were awaiting today's release of the July employment report.

The Nasdaq composite index rose 18.22 to 1098.81, and the American Stock Exchange's market value index rose 4.62 to 544.12.