Labels:crt screen | hakham | monitor | plant OCR: Falling rates ignite stocks As interest rates tumbledby as imuch as2. percentage pointsin 1991, stacks soared to all -time highs, with small shares retuming46%. nearly dou- blethe Dow 24.3% gain. In December however when the Federal Reserve cut the discount trate by afull point t to3.5% blue chips outpaced smallstocks 9.7% 8%. Armong the big. gest winners were compa nies sensitive 10 inrterest rates, such as home build ers, up 30.6% and savings and loans up 27.3%. December's s broadinter est-rate decline pushed long-term Treasury bond yields downto 7.5% while three month T-bill : lyields sank to 3.9% theirlowesi level snce the mid-1970s Big stocks VS. small Ratsei 3150 300 2550 Dow industrials Hussel 2000 Index Falline 3T00 Russell
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