The Register Citizen (Torrington, CT)

Inflation worries ease, stocks rise


U.S. stocks rallied to a seven-week high while the dollar sank after a weak inflation reading signaled the Federal Reserve won’t need to step up the pace of interest-rate increases.

Chipmakers paced gains in major American equity benchmarks, while ratesensit­ive shares added to the bullish mood as the 10-year Treasury yield slipped to 2.97 percent. A gauge of small-cap stocks set a record and emergingma­rket shares rallied on the more-favorable outlook for global borrowing costs. The dollar fell the most since March 21, lifting commoditie­s. The pound weakened after the Bank of England held interest rates.

The U.S. inflation data showed costs for big-ticket items such as automobile­s and airfares declined last month, reducing chances that consumer-price increases will run significan­tly above the Fed’s target. The news energized bulls, with the S&P 500 Index crossing above its 100-day moving average and breaking out of the downward-sloping trendline that’s been in place since late January.

“The market is breathing a sigh of relief that there was not an upside surprise to the inflation stats,” Peter Boockvar, the chief investment officer of Bleakley Financial Group, wrote in an email to clients.

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