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MARKET RISES SHARPLY AS INTEREST RATES DECLINE

The stock market ran up a broad gain today, encouraged by new declines in interest rates.

Trading was moderate on the eve of a long holiday weekend.

The Dow Jones average of 30 industrials rose 11.18 to 2,493.77 by noon.

Gainers outnumbered losers by about 2 to 1 in nationwide trading of New York Stock Exchange-listed issues, with 828 up, 419 down and 554 unchanged.

Volume on the Big Board came to 78.14 million shares at noon, up from 73.50 million at the same point Thursday.

Activity was expected to taper off through the day as many traders got an early start on the long Memorial Day weekend. The markets will be closed on Monday.

Interest rates fell in the credit markets today. Prices of long-term government bonds rose more than $5 for each $1,000 in face value, reducing their yields to the 8.6 percent-8.65 percent range.

Analysts said stocks benefited from expectations that the recent downturn in rates might go further soon, with encouragement from the Federal Reserve.

The economy has showed signs of slowing lately, as Fed policymakers have intended.

Sea Containers Ltd. jumped 9 to 57. The European companies Tiphook PLC and Stena AB made a $50-a-share offer for Sea Containers, and traders quickly bid up the price in anticipation of a possible higher offer.

The dollar was down sharply in moderate European trading today, a trend analysts saw as an expected correction after a strong surge. Gold prices rose.

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