STOCKS surged to their highest level in five months yesterday after a report that activity in US services companies powered ahead in September, a hopeful sign for the economy's largest sector and America's main source of employment.

A surprise move by the Bank of Japan to cut its key interest rate to virtually zero also lifted stocks worldwide. The dollar fell as investors shed defensive assets, and a gauge of US stock market volatility fell.

The Institute for Supply Management reported that the US services industry grew slightly faster in September as demand from customers improved. It was the ninth-straight month of expansion in services, which have been growing at a slower pace in the US relative to the much smaller manufacturing sector.

Traders are also hoping to get more positive news from the beginning of corporate earnings reports this week and from another key economic indicator, the Labor Department's monthly jobs survey on Friday. PepsiCo Inc. and Alcoa Inc. report results tomorrow.

In corporate news, Mexican broadcaster Grupo Televisa said it would invest US$1.2 billion in Univision Communications, expanding a license deal between the Spanish-language media heavyweights. Televisa's US shares rose 9.8 percent.

The Dow Jones industrial average rose 193.45 points, or 1.8 percent, to close at 10,944.72. All but one of the 30 companies that make up the average rose, led by Boeing Co. and Bank of America Corp. American Express Co. fell again, a day after the company said it would fight an antitrust lawsuit, even after Visa and MasterCard settled similar suits.

The Standard & Poor's 500 index rose 23.72, or 2.1 percent, to 1,160.75. The index broke through 1,150, a level it hadn't traded above since mid-May, and kept on going.

Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, cited another factor in today's upward swing: Even when stocks have fallen lately, the S&P 500 has managed to stay above 1,130, a key technicalbarrier that it had broken through on Sept. 20. He said that has given jittery investors confidence to buy.

"A lot folks who have cash on the sidelines are being drawn into the market because they don't want to be left behind," Pavlik says. "I think there's potential to get to 1,200 by the end of the year."

The Nasdaq composite index rose 55.31, or 2.4 percent, to 2,399.83.

Other market indicators also suggested growing confidence among investors. An index measuring the dollar against six major currencies fell 0.7 percent, the CBOE Market Volatility Index fell 7.2 percent to its lowest level since Sept. 24, and crude oil rose US$1.35 to settle at US$82.82 a barrel.

In a surprise move, Japan's central bank cut its key interest rate target to a range of zero to 0.1 percent, and is looking to buy government bonds in an effort to boost the faltering Japanese economy. Japan has been struggling with a strong currency and falling prices, and authorities there intervened in currency markets last month to weaken the yen, but the impact was short-lived.

Investors are also hoping for more action from the Federal Reserve to boost the US economy, and got more encouragement from remarks by Fed Chairman Ben Bernanke late Monday. Bernanke said the economy could be helped by another round of asset purchases by the central bank, and hopes are building that the Fed could announce new measures at its next meeting Nov. 2 and 3.

About five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.2 billion shares.

• yesterday [´jestədi] n.&ad.昨天；前不久 (初中英语单词)
• employment [im´plɔimənt] n.工作；职业；雇用 (初中英语单词)
• institute [´institju:t] n.学院 vt.建立；设置 (初中英语单词)
• management [´mænidʒmənt] n.管理；处理；经营 (初中英语单词)
• slightly [´slaitli] ad.轻微地；细长的 (初中英语单词)
• relative [´relətiv] a.有关系的 n.亲属 (初中英语单词)
• beginning [bi´giniŋ] n.开始，开端；起源 (初中英语单词)
• survey [´sə:vei] vt.&n.俯瞰；审视；测量 (初中英语单词)
• mexican [´meksikən] n.&a.墨西哥人(语)的 (初中英语单词)
• invest [in´vest] v.投资；授予 (初中英语单词)
• industrial [in´dʌstriəl] a.工业的，产业的 (初中英语单词)
• factor [´fæktə] n.因素；原动力；要素 (初中英语单词)
• upward [´ʌpwəd] a.&ad.向上(的)；以上 (初中英语单词)
• lately [´leitli] ad.近来，不久前 (初中英语单词)
• barrel [´bærəl] n.(琵琶)桶；圆筒 (初中英语单词)
• economy [i´kɔnəmi] n.经济；机制；组织 (初中英语单词)
• federal [´fedərəl] a.联邦的，联邦制的 (初中英语单词)
• volume [´vɔlju:m, ´vɑljəm] n.卷；书籍；体积；容量 (初中英语单词)
• expansion [ik´spænʃən] n.扩大；膨胀；发展 (高中英语单词)
• positive [´pɔzətiv] a.确定的 (高中英语单词)
• monthly [´mʌnθli] a.每月(的) n.月刊 (高中英语单词)
• billion [´biljən] num.万亿 (高中英语单词)
• technical [´teknikəl] a.技术的；专门性的 (高中英语单词)
• barrier [´bæriə] n.栅栏；屏障；障碍 (高中英语单词)
• potential [pə´tenʃəl] n.&a.潜在的；可能的 (高中英语单词)
• currency [´kʌrənsi] n.通货；通用；货币 (高中英语单词)
• weaken [´wi:kən] v.(使)弱化；衰弱；稀薄 (高中英语单词)
• encouragement [in´kʌridʒmənt] n.鼓励；赞助；引诱 (高中英语单词)
• hopeful [´həupfəl] a.有希望的，激励人的 (英语四级单词)
• virtually [´və:tʃuəli] ad.实际上，实质上 (英语四级单词)
• defensive [di´fensiv] a.&n.防御(的) (英语四级单词)
• earnings [´ə:niŋz] n.收益；报酬；获得 (英语六级单词)
• impact [´impækt] n.影响，作用；冲击 (英语六级单词)