WALL Street stocks turned higher as bargain hunters took advantage of a two day slide, but the advance was muted by persistent profit taking amid fears of higher interest rates and inflation.
The Dow Jones industrial average rose 19.58 points to close at 5693.41, after sinking by nearly 30 points earlier in the session.
Broader market measures turned higher too after starting the day lower with the bond market, where interest rates shot higher again. On Wednesday, stocks and bonds dropped as a Federal Reserve official's comments spurred fears the central bank would hike interest rates to fight inflation.
Yesterday, bonds slid further after the commerce department's revised reading on gross domestic product showed that the economy was expanding at an annual rate of 2.3 per cent in the first quarter as consumer spending surged.
But bonds later rose and the yield edged back down to 6.92 per cent later after a strong auction of new government securities.
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