Dow Beats 4,700 as Stocks Soar on Hopes of Global Rate Cuts : Wall Street: Nasdaq composite volume tops 500 million for first time. Dollar rallies after intervention.

Stocks surged Friday to record highs for the third time this week amid hopes that Thursday’s interest rate cut by the Federal Reserve Board means rates will fall around the world, spurring economic growth and corporate earnings.

“The bears that were screaming, ‘We’re running out of cash!’ were wrong once again,” said Alfred Goldman, technical research director at A.G. Edwards.

After gaining more than 100 points in the previous three sessions, the Dow Jones industrial average added 38.73 on Friday to close at 4,702.73. The first close above 4,700 for the closely watched index came just two days after it first closed above 4,600.

Gaining issues trounced losers by more than 2 to 1 on the New York Stock Exchange, where volume was the fourth-busiest in NYSE history. Big Board volume soared to 467.58 million shares, up from 420.51 million on Thursday.

The market-leading technology sector continued to dazzle, with the tech-heavy Nasdaq composite index rising 16.83 points to a record 969.76; volume topped 500 million shares for the first time ever. It was the biggest point gain for the index since April 5, 1994.

Other broad market indexes also gained. The NYSE’s composite index rose 1.28 point to 297.71 and the Standard & Poor’s 500-stock index rose 2.38 points to 556.37. At the American Stock Exchange, the market value index rose 1.69 points to 505.20.

Meanwhile, stocks surged more than 6% in Japan in heavy trading after the Bank of Japan decided to ease short-term interest rates. The 225-issue Nikkei average closed up 956.19 points, or 6.27%, at 16,213.08. The average has risen four days in a row, gaining a total of 1,727.67 points.

Other overseas markets benefited from the Fed’s rate cut, including London’s FTSE-100 average, which soared 74.6 points to 3,462.9, and Frankfurt’s 30-share DAX average, which ended up 32.17 points at 2,153.39.

In Mexico City, the Bolsa index ended up 54.21 points at 2,457.18.

The Labor Department said the unemployment rate dropped to 5.6% in June from 5.7% in May, whereas many economists had been expecting an increase to 5.8%. Also, the economy added 215,000 jobs in the month, confounding predictions of a 125,000-job drop.

However, the jobs report aroused bond market fears of an impending rebound in the economy from a recent slump, triggering a sharp rise in bond yields, although they retreated later in the day on renewed bullishness that followed Thursday’s rate cut.

At the close, the Treasury’s benchmark 30-year bond yield rose to 6.52% from 6.49% on Thursday. Its price, which moves in the opposite direction, fell 13/32 point, or $4.06 per $1,000 in face value.

Among Friday’s highlights:

* Cyclical issues helped lead the market higher. Those that benefited included Alcoa, up 1 1/2 to 56; Caterpillar, up 2 3/4 to 71 1/8; DuPont, up 2 1/8 to 72 3/8; Goodyear Tire, up 1 1/4 to 45, and Union Carbide, up 2 1/2 to 36 3/4.

* Technology stocks posting gains included Intel, up 2 13/16 to 68 1/4; Microsoft, up 2 7/8 to 95 5/8, and Micron Technology, up 1 5/8 to 56 5/8.

* Scott Paper shed 3 to 47 on disappointment that no merger deal has emerged for the company, traders said.

* IBM gained 3/4 to 99 5/8 after rising above the key 100 level for the first time since July 16, 1992.

Market Roundup, D3