Business Notes

Before the Persian Gulf war began, the stock market was in deep hibernation. But after hostilities got started, and with allied victory all but certain, investors staged fireworks of their own. Last week the Standard & Poor's 500 index hit a seven-month high of 369. The Dow exploded, rising 104 points to finish the week at 2,934.65 after a 100-point gain the previous week. The market has soared nearly 17% since the war began Jan. 16, more than regaining all the territory it lost in the months after Iraq invaded Kuwait.

No abundance of good news seemed to explain the market's explosive performance. The economy seemed far from robust as industrial production fell 0.4% last month. Though hopes for a settlement of the war vanished quickly & after flickering briefly Friday morning, investors found enough to cheer about in falling oil prices and lower interest rates. With institutional and individual investors still being enticed off the sidelines, analysts speculate that the market's dramatic rise may not be over.