US stocks rise amid inflation report, drop in oil price

June 14th, 2008 - 7:18 am ICT by IANS  

New York, June 14 (DPA) US stocks ended the week higher Friday after an inflation report suggested surging petrol costs were not leading to a wider rise in consumer prices. Inflation came in at a seasonally-adjusted 0.6 percent in May, largely on the back of a 5.8-percent increase in the price of petroleum-based products, the US Labour Department said.

Core prices - which exclude volatile food and energy - rose only 0.2 percent on the month, easing speculation that the Federal Reserve will raise interest rates when it meets later this month.

Crude oil dropped on the day, spurring gains in retailers and the US currency.

The blue-chip Dow Jones Industrial Average was up 165.77 points, or 1.37 percent, to 12,307.35. The broader Standard & Poor’s 500 rose 20.16 points, or 1.5 percent, to 1,360.03. The technology- heavy Nasdaq Composite Index gained 50.15 points, or 2.09 percent, to 2,454.50.

The US currency climbed against the euro to 65.02 euro cents from 64.76 euro cents Thursday, and also gained on the Japanese currency to 108.19 yen from 107.94 yen.

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