Wall Street capped a volatile week with sharp gains today as oil prices tumbled and after Federal Reserve Chairman Ben Bernanke said inflation pressures are likely to moderate. The Dow Jones industrial average rose nearly 200 points.

Wall Street rose smartly in a quiet session today as investors adjusted positions ahead of a bank holiday weekend and tried to determine whether a lacklustre week presaged a departure from the market’s months-long run-up or merely a temporary pause.

Wall Street’s fixation with oil prices left stocks little changed today, although investors managed to react stoically to the government’s report of a drop in crude inventories.