Wall Street Set to Edge Higher as Inflation Fears Fade

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Dow Jones lags for the week on weakness in industrials

SP 500, Nasdaq set for mild weekly gains

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Futures up Dow 0.2, SP, Nasdaq 0.1 Adds comment, updates prices

June 11 Reuters U.S. stock indexes were set to inch up on Friday after inflation data calmed concerns over a possible longterm spike in consumer prices, with focus turning to next weeks Federal Reserve meeting for more cues on monetary policy.

The SP 500 had surged to a record high on Thursday as investors scaled back expectations for early policy tightening by the Fed, with Mays consumer price data suggesting that a recent spike in inflation would be transitory.

Much of the price surge in May came from items such as commodities and airfares and it is expected to be temporary.

With recent data also indicating weakness in the labor market, the Fed is widely expected to maintain accommodative policy, which is positive for stocks and other riskdriven assets.

The commentary will be that theyre still focusing on the last two employment reports, which were much weaker than anticipated. And so the Fed will have to wait for additional data before even talking about tapering, said Sam Stovall, chief investment strategist at CFRA Research in New York.

This meeting coming up plus the meeting in late July will probably result in no policy changes, or even contemplation of policy changes.

U.S. SP 500 Eminis were up 5.75 points, or 0.14, at 0802 a.m. EDT….

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