Stock markets were up for the year:

NEW YORK, Dec 31 (Reuters) - Blue chips etched out slim gains to end at their 2003 peak on Wednesday as investors paused to reflect on the blazing rally over the past year that helped the market rack up its first annual gain since 1999.

Signs of an economic rebound, higher corporate profits and the success of U.S.-led forces in toppling Iraqi leader Saddam Hussein gave stocks a hefty boost in 2003, helping them to recover from a punishing 3-year bear market.

"It was the first time in a long time that we've seen corporate profits hold and move even slightly higher compared to expectations," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank Private Banking.

Low interest rates throughout the year helped build hopes for an economic recovery and feed investors' appetite for stocks, Fitzpatrick added.

For the year, the blue-chip Dow rose 25.3 percent, its biggest yearly gain since 1996. The S&P 500 gained 26.4 percent to post its largest annual gain since 1998, and the tech-laden Nasdaq soared 50 percent, its biggest increase since 1999.

The "Jobless Recovery" will be a non-issue by August.