Market Up After Seesaw Session

Investors shrug off inflation; sluggish growth seen
By Jonas Oransky,  Newser Staff
Posted Feb 20, 2008 3:45 PM CST
Traders and specialists work on the floor of the New York Stock Exchange, Thursday, Feb. 14, 2008. Wall Street retreated Thursday after Federal Reserve Chairman Ben Bernanke predicted the economy will...   (Associated Press)
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(Newser) – The Dow rose 90.04 points to 12,427.26 today in roller-coaster trading despite rising fears of inflation, MarketWatch reports. US consumer prices rose 0.4% last month in what one investment officer called “a nagging problem for the Fed.” The Nasdaq climbed 20.90 to 2,327.10, and the S&P rose 11.25 to 1,360.03.

Despite the inflation report, and the close of crude oil futures above $100 for the second straight day, investors went on a buying spree, the Wall Street Journal notes. That's because newly released Fed minutes hint at another rate cut next month. Also today, Fed leaders said they expect economic growth to be sluggish and joblessness to rise this year, the Washington Post reports.