WSJ article; Minutes Trump Inflation Fears
Stocks Make a Comeback
Despite Inflation Signals
February 20, 2008 5:10 p.m.
Investors shrugged off signs of inflation past and future on Wednesday, opting instead to go on a buying spree fueled by confidence that the Federal Reserve is more concerned about the economy grinding to a halt than prices heating up.
Data on retail-level inflation in January were surprisingly strong and crude-oil futures rallied to a second straight record settlement over $100 a barrel. If that rally persists, it could nudge other prices higher in the months ahead.
That concern kept stocks in the red for much of Wednesday's session. But a rally took hold in the afternoon after minutes of the last Fed meeting bolstered Wall Street's confidence that the central bank will cut its key interest-rate target next month to shore up the economy, despite expectations that prices will keep rising.
The Dow Jones Industrial Average rose 90.04 points, up 0.7%, to 12427.26. The Standard & Poor's 500 gained 0.8%, or 11.25 points, to 1360.03. The technology-focused Nasdaq Composite Index rose 0.9%, or 20.90 points, to 2327.10.
Stocks Make a Comeback
Despite Inflation Signals
February 20, 2008 5:10 p.m.
Investors shrugged off signs of inflation past and future on Wednesday, opting instead to go on a buying spree fueled by confidence that the Federal Reserve is more concerned about the economy grinding to a halt than prices heating up.
Data on retail-level inflation in January were surprisingly strong and crude-oil futures rallied to a second straight record settlement over $100 a barrel. If that rally persists, it could nudge other prices higher in the months ahead.
That concern kept stocks in the red for much of Wednesday's session. But a rally took hold in the afternoon after minutes of the last Fed meeting bolstered Wall Street's confidence that the central bank will cut its key interest-rate target next month to shore up the economy, despite expectations that prices will keep rising.
The Dow Jones Industrial Average rose 90.04 points, up 0.7%, to 12427.26. The Standard & Poor's 500 gained 0.8%, or 11.25 points, to 1360.03. The technology-focused Nasdaq Composite Index rose 0.9%, or 20.90 points, to 2327.10.