NEW YORK (TheStreet) -- Stocks hovered near session highs by mid-afternoon Thursday as weak consumer prices supported hopes a dovish Federal Reserve would use a gentle hand in raising rates this year.
The Nasdaq set a new intraday high of 5,143, breaking the previous record set 15 years earlier. By early afternoon, the Nasdaq was up 1.3%, the S&P 500 gained 1% and the Dow Jones Industrial Average added 1.1%, or 200 points.
Failed debt talks between Greece and its eurozone creditors during a Eurogroup meeting did little to shake Wall Street's rally. The lack of progress was seen as a "strong signal" for the debt-laden country to "engage seriously in negotiations," Valdis Dombrovskis, the European Commission's vice president for the euro and social dialogue, said on Twitter.
European Council President Donald Tusk has called an emergency summit for further debt talks on Monday. Eurozone finance ministers from 19 countries will convene to try to overcome the stalemate.
Greece's central bank has admitted that the country will default and exit the eurozone if a deal with its creditors cannot be formed, becoming the first developed country to default on the International Monetary Fund. Eurozone finance ministers want Greece to introduce a round of austerity measures in exchange for further debt relief. Greece has until the end of the month to repay its debts to the IMF. Click here for more.
Consumer prices in the U.S. continued to show weakness, potentially giving pause to the Fed's plans for interest rate hikes. Prices in May rose 0.4%, attributable to a 10.4% bounce in gasoline prices. The reading came in below estimates for an increase of 0.5%. Core CPI rose 0.1%, below economists' forecasts of a 0.2% increase excluding volatile items such as food and energy.