The Labor Department report says that the core Consumer Price Index (CPI) only rose 0.2 percent, keeping in line with expectations. Stocks rose in the U.S. after it eased inflation concerns, making it less likely the FED would increase interest rates in the short term.
"There was concern earlier in the week that CPI would be out of range, but it came in within expectations and that was a relief. We saw the market respond favorably," said Bucky Hellwig, senior vice president at Morgan Asset Management.
Also help feed the positive mood was the fall in July delivery of CLc1 U.S. crude oil to $134.86 a barrel, a decrease of $1.88.
Even with the good news, gasoline prices continue to rise, as they were up by 0.6 percent for May. Food prices in May on the other hand dropped by 1.3 percent from April prices.
The DJIA, S&P 500 and Nasdaq were all up significantly for the day in response to expectations being met for the core CPI.
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