Stocks recouped earlier losses to end modestly higher today as investors set aside nervousness over an uneasy start to the second-quarter earnings season, marked by weak results from Alcoa Inc. and a sales warning at Lucent Technologies Inc.

Inflation fears sent stocks plunging in the United States today as jitters over high oil prices exacerbated signals that the Federal Reserve will keep lifting interest rates to contain price increases.

Stocks declined moderately today as news of job cuts at Merck & Co. and a mixed holiday sales snapshot prompted Wall Street to take a breather from its recent five-week rally.

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.

Surging oil prices and a weak dollar prompted a spate of profit-taking today, pushing stocks slightly lower in light holiday-week trading.