By Elizabeth Stanton
Aug. 5 -- U.S. stocks rallied the most since April as oil retreated to a three-month low and the Federal Reserve predicted inflation will ease through next year.
Sears Holdings Corp. jumped, sending the Standard & Poor's 500 Consumer Discretionary Index to its steepest advance in five years, as crude tumbled for a second day. JPMorgan Chase & Co. and Citigroup Inc. led financial shares to their best gain in a week. All 10 industries in the Standard & Poor's 500 Index rose as the" Fed left its benchmark interest rate unchanged and said it ``expects inflation to moderate'' later this year and next.
``They implied that commodity price pressure would probably remain contained,'' said Frederic Dickson, who helps oversee $23 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. ``They didn't raise any new risk factors.''