BUSINESS

Dow average surges to record high, driven by higher profits; recovers ground lost in recession

03/05/2013 04:13 EST | Updated 05/05/2013 05:12 EDT
NEW YORK, N.Y. - The Dow is closing at a record, beating the previous high it set in October 2007, before the financial crisis and the Great Recession.

The Dow Jones industrial average rose 126 points, or 1 per cent, to 14,253 Tuesday, beating its previous record by 89 points.

The index is up nearly 9 per cent this year, capping a remarkable comeback. The Dow has more than doubled since hitting a 12-year low in March 2009.

The Standard & Poor's 500 index rose 14 points, or 1 per cent, to 1,539. The S&P is also within striking distance of its record close of 1,565.

The Nasdaq gained 42 points, or 1.3 per cent, to 3,224.

Three stocks rose for every one that fell on the New York Stock Exchange. Volume was light at 3.3 billion shares.