Stocks gained today after inflation and Ivan turned out to be less threatening than anticipated.
The Dow Jones industrial average gained 13 points to 10244.49. The Standard & Poors 500 stock index climbed 3 to 1123.50. The Nasdaq Stock Market composite index closed up almost 8 points at 1904.08.
Pretty much proclaiming inflation dead, the Commerce Department reported that consumer prices rose just 0.1 percent in August.
The bond market reacted immediately, lowering interest rates even though most traders believe the Federal Reserve will raise rates when it meets next Tuesday.
Rates on 10-year Treasury bonds fell to 4.07 percent, down almost one-tenth of a percentage point, their biggest one-day drop in six weeks.
While an increase in the short-term rates that are set by the Fed may be coming next week, bond traders believe that with inflation so low, longer-term rates will not rise in lock-step with the Fed.
Wall Street also found some relief in the early reports on Hurricane Ivan, which did not cause as much damage or disrupt petroleum production in the Gulf of Mexico as much as expected.
Early estimates were that Ivan's insurance claims would run in the $2 billion to $6 billion range -- far less than the maximum of $20 million that some insurance experts had predicted.
No details are available yet on damage to oil platforms in the Gulf, but when the storm tracked toward the east, it skirted the heaviest concentration of offshore rigs.