The Week on Wall Street: Rates Recede, Stocks Rally

Friday

Stocks rallied for the third straight day and the Dow and S&P came within striking distance of new all-time highs after the May CPI report showed that inflation was being held in check, helping to ease concerns about rates.

Tech stocks were in focus after Adobe Systemsreported quarterly results after Thursday's close of trading. Intel continued it's rally, rising for the sixth day and tacking on another 4.3%, as investors bet on the stock following a Goldman upgrade.

Market breath was positive with advancers outpacing decliners by a 4-to-3 margin, but volume remained relatively low.

Peter Kang is a markets writer for CNBC.com. He can be reached at [e-mail].