Wall Street Gains On Stronger Dollar

“We've had a pretty good bull run that carried us up to about 1,400 on the S&P 500 and what we would expect is a little churning here”

Wall Street advanced moderately Monday as a rising dollar cooled some concerns about inflation and helped keep oil prices in check. The Dow Jones industrials at times rose more than 100 points.

The dollar's gains against other major currencies appeared to help ease some concerns about inflation. A weak dollar can exacerbate price increases, especially since hard commodities like oil become more attractive to investors seeking a hedge against inflation.

The market's unease about rising inflation and its effect on consumer spending receded somewhat as light, sweet crude wavered, falling 55 cents to $125.41 per barrel on the New York Mercantile Exchange. Oil briefly reached a new trading high of $126.40, but investors seemed shy, for the time being at least, to add to oil's huge gain of nearly $10 last week. That advance added to concerns about rising prices and their effect on businesses and consumers. Read more