In addition, the economic fundamentals of benign inflation and moderate growth that have fueled this year's rally are still intact.

Further evidence of benign inflation, seen in a widely followed monthly report on American manufacturing, helped reassure investors that the bull market still has stamina.

Even with the good news, the market rally fluctuated, leaving some market participants believing that they have already seen the best of the data showing benign inflation.

If all the ingredients for a bull market - low interest rates and benign inflation - continue, investors should have little to worry about.

Still, the Federal Reserve found inflation benign as economic growth continued in March and April.

Treasury securities rallied further on optimism that September unemployment data released today would provide further evidence of benign inflation.

Talks that the Fed might cut interest rates has faded in recent weeks, and with inflation still benign, most market participants expect no action at all this week.

Instead, he spoke of the low and "benign" inflation of the past year.

The survey found that only 18 percent of 800 respondents raised prices this summer while 13 percent cut them, the most benign inflation results this year.

The stock market turned sluggish yesterday despite new data that showed benign inflation.