Stock prices rise as oil prices drop below $43 a barrel

NEW YORK – A sharp decline in oil prices and a surprise drop in wholesale prices pushed stocks higher Friday as investors’ concerns about third quarter earnings were mitigated. The Nasdaq composite index surged with investors buying heavily into an oversold technology sector.

Oil prices fell briskly through the afternoon, again moving below $43 per barrel after spiking higher on Thursday. A barrel of light crude settled at $42.81, down $1.80, on the New York Mercantile Exchange.

Investors welcomed the 0.1 percent drop in the Producer Price Index, the Labor Department’s measure of wholesale prices, since the news was a strong sign that the economy has still managed to keep inflation at bay despite this summer’s rising oil costs.

The Nasdaq gained 24.66, or 1.3 percent, to 1,894.31.

Other stock indicators also moved higher. The Standard & Poor’s 500 index was up 5.54, or 0.5 percent, at 1,123.92, and the Dow Jones industrial average rose 23.97, or 0.2 percent, to 10,313.07.

For the week, the Dow rose 0.5 percent and the S&P was up 0.9 percent, while the Nasdaq soared 2.7 percent, though the tech-focused index remains down 5.4 percent for the year.