US stocks in positive territory

Wall Street rallied for a second straight session today after easing wage pressures and stronger-than-expected service sector activity raised prospects that the US economy could cool gradually and leave room for the Federal Reserve to lower interest rates next year.

Investors applauded Labour Department figures showing wages and benefits increased at a much slower pace in the third quarter than had been estimated. Recent concerns about inflation have eroded some hopes that the Federal Reserve would start lowering interest rates next year. The central bank has said inflation remains its primary concern.