The Dow Jones Industrial Average rose 7.84 points to 11,334.94, but off a session high of 11,372.42. Of the 30 Dow stocks, 18 contributed to gains. Check performance of Dow stocks.

The Nasdaq Composite Index rose 8.07 points to 2,157.61 while the S&P 500 Index gained 2.05 points to 1,297.48.

The Dow industrials last posted a four-day string of gains in early May. For the S&P 500 and the Nasdaq, it was the first time the indexes rose four days in a row since mid-March.

"We've had a sea change in the markets over the past few trading sessions," said Michael Sheldon, chief market strategist at Spencer Clarke LLC. "With the short-term breakout in the S&P 500 above 1,290 and the Dow above 11,283, the near-term direction of the market appears to be higher."

Sheldon said that while he remains concerned about an economic slowdown and downturn in the stock market down the road, "the markets may make a run at their recent highs over the next several weeks."

On May 10, the Dow reached a high of 11,670 before paring gains to end the session at 11,642. The S&P 500, meanwhile, climbed to a high of 1,326.70 on May 8.

The Dow Jones Industrial Average rose 96.86 points to 11,327.12. The benchmark index closed at its best level since May 16. Of the 30 components, 25 contributed to gains. Check performance of Dow stocks.

The Nasdaq Composite Index climbed 34.53 points to 2,149.54.

The S&P 500 Index was up 9.85 points at 1,295.43. The broad gauge ended at its best level since May 11.

For a second session, technology stocks have paced the advance. Since the start of the year, the tech-rich Nasdaq Composite index is down around 2.5%. In contrast, the Dow is up about 5.5% while the S&P 500 has gained nearly 4%.

Investors cheered retail inflation data showing a smaller-than-expected rise in core prices, excluding volatile food and energy costs.

July core consumer prices rose 0.2%, breaking a string of four consecutive 0.3% monthly gains. Economists polled by MarketWatch had projected another 0.3% rise.

The futures contract for the Dow Jones Industrial Average was up 52 points at 11,300.

Futures contracts for the S&P 500 and the Nasdaq 100 were up 6.70 points at 1,294.40 and up 13.5 points at 1,554.

On Tuesday stocks ended higher, with the S&P 500 at its best level in 2 and a half months, after a tame producer-level inflation report that also allayed fears of further interest rate hikes to come.

Inflation was back in focus on Wednesday after the Labor Department said that in July core consumer prices rose 0.2%, breaking a string of four consecutive 0.3% monthly gains. Economists polled by MarketWatch had projected another 0.3% rise.

However, core prices have risen 2.7% in the past year, the highest since late 2001. Core figures strip out volatile food and energy prices.

Soaring energy costs pushed the total CPI up 0.4% in July, as expected by economists surveyed by MarketWatch

The Federal Reserve weighs the impact of core inflation on consumers in making monetary policy decisions. The news of slowing core inflation takes some of the pressure off the Fed to continue lifting rates.

The Nasdaq Composite posted its best one-day point gain in more than six weeks to end at a one-month high, while the Dow Jones Industrial Average rallied triple digits to put in its biggest one-day point rise in more than three weeks.

The Dow industrials rose 132.39 points, or 1.2% to 11,230.26. The last time the benchmark index registered a bigger point gain was on July 24, when it rose 183 points. Of the 30 Dow-component stocks, 28 contributed to gains.

The Nasdaq Composite Index moved up 45.97 points, or 2.2% to 2,115.01. It marks the best one-day point rise for the tech-rich index since June 29, when it shot up 63 points.

The S&P 500 Index climbed 17.37 points to 1,285.58; the broad gauge closed at its highest level since June 2.

"The PPI is overwhelming any concerns in the economy," said Jim Awad, chairman of Awad Asset Management. "It reinforces, for the moment, the notion that the Fed is not going to be a problem."

The Labor Department said the producer price index rose 0.1% in July, below the 0.3% gain expected, and the core PPI -- which excludes food and energy prices -- fell 0.3%, marking the first decline since October. Economists had expected the core rate to have risen 0.2% last month. See full story.

Last week, the Fed decided not to raise interest rates for the first time in more than two years. The move was seen as giving policy makers time to see whether they have raised interest rates enough to cool inflationary pressures or whether they have put growth at risk by raising rates too much. The fed-funds rate currently stands at 5.25%. See full story.

S&P 500 futures shot up 10.80 points to 1,284.00 and Nasdaq 100 futures hiked up 21.25 points to 1,521.50. Dow industrial futures climbed 92 points to 11,225.

On Monday, an early rally couldn't hold up, with the Dow industrials ending the session up less than 10 points, and the S&P 500 and Nasdaq Composite also sporting tepid gains. Concerns over whether inflation reports due out this week will cause the Federal Reserve to resume its rate-hike campaign hurt stocks. See Market Snapshot.

Those concerns were erased for the time being by tame producer price data.

The producer price index for finished goods rose 0.1% in July, below the 0.3% gain expected, the U.S. Labor Department said. The core PPI -- which excludes food and energy prices -- fell 0.3%, the first decline since October. Economists surveyed by MarketWatch had expected the core rate to rise 0.2%, on average.

The New York Federal Reserve Bank's Empire State Manufacturing index fell to 10.3 in August from a revised 16.6 in July. This is the slowest growth pace since June 2005. The decline was larger than expectations of a slip to 13.9 from the initial estimate last month of 15.6

The dollar fell after the data against its major rivals.

Crude-oil futures were down 20 cents at $73.33 a barrel, but recovered from earlier lows. See Futures Movers.