Target Corp., AMR Corp. and Dow Chemical Co. gained as crude lost as much as 2.4 percent. Citigroup Inc., Goldman Sachs Group Inc., and Morgan Stanley rallied after so-called core prices climbed 0.2 percent, meeting the average estimate of economists surveyed by Bloomberg. Microsoft Corp., the world's biggest software maker, advanced for a second day after abandoning its bid for Yahoo! Inc.
The Standard & Poor's 500 Index added 9.75, or 0.7 percent, to 1,349.62 as of 1:20 p.m. in New York. The Dow Jones Industrial Average jumped 78.72, or 0.6 percent, to 12,217.30. The Nasdaq Composite Index advanced 32.57, or 1.4 percent, to 2,436.92. More than two stocks gained for each that slipped.
Bets the Fed will boost its target rate for overnight loans between banks sent the S&P 500 down 0.8 percent this week, extending its 2008 drop to 8 percent. Today's 0.2 percent gain in consumer prices excluding food and energy helped allay concern that higher borrowing costs will erode corporate profits.
Oil fell as the dollar headed for its biggest weekly rally in almost three years, reducing the appeal of commodities, and Saudi Arabian Oil Minister Ali al-Naimi said record prices are ``unjustified.'' Crude for July delivery dropped as much as $3.28 to $133.46 a barrel before paring more than half of its decline.
The consumer price index increased 0.6 percent, the most since November, after a 0.2 percent gain the prior month, the Labor Department said. So-called core prices, which exclude food and energy, matched the median estimate of economists surveyed by Bloomberg News.