Dow Jumps 100 Points on Inflation Data
Friday June 15, 10:03 am ET
By Tim Paradis, AP Business Writer
Stocks Move Sharply Higher Following Tame Core Inflation Reading
NEW YORK (AP) -- Wall Street barreled higher Friday after the week's most anticipated economic reading indicated that inflation excluding the price of gas remained tepid last month, easing some concerns that have jolted stock and bond markets in recent sessions. The Dow Jones industrials at times advanced more than 100 points.
The consumer price index showed prices rose at the fastest pace in 20 months last month as the cost of gas jumped. However, the so-called core personal consumption price index, which excludes often volatile food and energy prices, rose a lower-than-expected 0.1 percent. The figure, which the inflation-wary Federal Reserve watches closely, was below the 0.2 percent increase Wall Street expected.
The yield on the benchmark 10-year Treasury note fell to 5.20 percent Friday from 5.23 percent late Thursday after release of the CPI report helped ease emergent concerns that the Fed might raise rather than lower interest rates this year.
The notion of a rate hike gained traction last week when inflation concerns sent the yield on the 10-year note above 5 percent for the first time since last summer. Subsequent spikes in bond yields, which move in the opposite direction as prices, roiled stock markets last week and early this week.