Stocks up as oil price drop eases inflation fears

May 12, 2008 6:00:56 PM PDT
Wall Street rallied Monday as oil prices fell back and alleviated some of investors' concerns about accelerating inflation. The Dow Jones industrials gained 130 points.

Oil's retreat helped soothe some of Wall Street's worries about inflation's impact on consumer spending.

Investors also got some encouraging news about the credit crisis from London-based HSBC Holdings PLC, which said its first-quarter profits were up from a year ago although the global banking company took a $3.2 billion write-down on subprime mortgage assets in the United States.