US shares move above record high

US traders are optimistic about profit growth and falling oil prices

The New York Stock Exchange's benchmark Dow Jones share index briefly rose above its record closing high during early trade on Thursday.

The Dow Jones Industrial Average surged to 11,724.86, rising above the previous record closing high of 11,722.98 that it hit on 14 January 2000.

The record level drew out sellers looking to lock-in profits, and the index soon fell back.

In morning trading, the Dow stood at 11,706, up 17 points.

The Dow is continuing to benefit from falling oil prices and signs that US interest rates may have peaked.

Economists are hopeful that consumer spending will remain resilient in the face of a cooling economy.

Lower interest rates?

Consumer confidence rose unexpectedly in September, helped by falling petrol prices and more confidence in the job sector.

The improvement in sentiment came despite continuing weakness in the housing market, with prices down on last year, and retail sales remaining subdued.

Analysts have also been encouraged by the US Federal Reserve's decision to freeze interest rates at 5.25% for two successive months, signalling to some that inflation is under control and that rates could even fall next year.

After peaking in January 2000, the bursting of the tech-bubble, the 9/11 terror attacks and a number of US corporate scandals saw the Dow sink to 7,286.27 in October 2002.