Wall Street ended a turbulent week with a sharp gain Friday after government readings on inflation and a drop in oil prices eased worries about the effect of rising prices.
The Dow Jones industrial average jumped 165 points. For the week, the Dow gained 97 points, but broader indexes lost ground.
The consumer price index grew 0.6% last month, slightly more than the 0.5% increase economists had estimated. The core inflation reading, which excludes often volatile food and energy prices, edged up a more moderate 0.2%, as expected.
The fact that the run-up seemed largely contained to food and energy appeared to bolster the case for the Federal Reserve to keep rates unchanged when it meets June 24-25 and perhaps to hold off on boosting rates for a number of months.
Comments this week by officials of the central bank, however, make clear that they are mindful of rising prices and the taxing effect they can have on the economy.
And the rise in energy costs is leaving some consumers in a downcast mood. The Reuters/University of Michigan preliminary reading on consumer sentiment neared a 30-year low this month, falling to 56.7 from 59.8 in May.
Friday's stock market session saw the Dow rise 165.77 points, or 1.4%, to 12,307.35.
Broader stock indicators also advanced. The Standard & Poor's 500 index climbed 20.16 points, or 1.5%, to 1,360.03, and the Nasdaq composite index surged 50.15 points, or 2.1%, to 2,454.50.
Advancers outnumbered decliners by almost 3 to 1 on the New York Stock Exchange.
The day before, stocks rose moderately after a steep sell-off Wednesday that came as oil prices rose, stirring inflation worries.
For the week, the Dow gained 0.8%, the S&P 500 inched down less than 0.1% and the Nasdaq composite index dropped 0.8%.
The inflation findings left the bond market mixed after a week in which yields surged. Some short-term yields were slightly lower Friday but the benchmark 10-year T-note rose to 4.26% from 4.21%.
The dollar advanced against other major currencies, while gold prices edged up.
Oil prices retreated a day after a sharp rebound. Crude futures lost $1.88 to settle at $134.86 on the New York Mercantile Exchange.
Michael Strauss, chief economist at Commonfund, said the stock advances that were seen Thursday and Friday belied some of the unease over inflation. Investors remain worried that inflation, while somewhat in check now, could pop in the coming months, he said.
