Stocks Perk Up On Inflation Data

Stocks rebounded sharply Friday after a government report showed that inflation remains tame at the wholesale level, raising hopes that the Federal Reserve might cut interest rates.

News that core inflation remains tame even as energy prices continue to spike gave traders hope that the Fed will have room to cut rates to boost faltering consumer spending and slowing economic growth.

A UBS upgrade boosted shares of Applied Materials by 3%, helping to send the Nasdaq to a 1.1% gain on the day. The chip sector gained 1.2%.

Adaptec rose nearly 5% on its results, and Nvidia , Net 1 UEPS and Novatel gained on their earnings reports.

Actions Semi , Aviza , and Syntax-Brillian fell on their quarterly results.

The Nasdaq rose 28 to 2562, the S&P 500 gained 14 to 1505, and the Dow surged 111 to 13,326. Volume declined to 2.72 billion shares on the NYSE, and 1.79 billion on the Nasdaq. Advancing issues led by a 25-7 margin on the NYSE, and 21-9 on the Nasdaq. Upside volume was 81% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 143-27 on the NYSE, and 122-85 on the Nasdaq.

News Around the Web