Around the World's Markets: New York

STOCKS RALLIED strongly yesterday as investors sensed that Wall Street's fears of a big rise in interest rates were over-blown.

The Federal Reserve Bank's Federal Open Market Committee is to meet today and Wednesday and the market is now betting on a small increase of only 25 basis points in short-term interest rates, analysts said.

The Dow Jones industrial average ended up 102.59 points, or 0.97 per cent, at 10,655.15. In the broader market, advancing issues beat declines 1,859