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Inflation fears took a back seat - allowing Wall Street to have its best day in just over a week. The Dow rallied 165 points. The S&P 500 climbed 20 and the Nasdaq jumped 50. It was a mixed picture for the week. The Dow rallied less than a percent, the Nasdaq fell by a similar amount. Consumer prices in May rose by their biggest measure in six months - led by a jump in gasoline prices. But excluding volatile food and energy - the inflation picture was less worrisome. A small rise in the so-called core CPI matched forecasts - soothing fears inflation is out of control. A drop in crude prices also led to fewer inflation worries. Saudi Arabia is reportedly considering a significant boost in production to near record levels. A stronger dollar also helped knock oil prices lower. Crude settled the week under $135 a barrel. But high prices for food and energy continue to plague shopping attitudes. Consumer sentiment tumbled to fresh 28-year lows in early June, according to a Reuters University of Michigan survey. Yahoo continued to be under scrutiny. The company's new partnership with Google failed to quiet worries about its future, now that Yahoo has ended talks with Microsoft without reaching a deal. Looking at key players -- Yahoo saw a small loss. But Microsoft rose nearly 3 percent. Google rose 3.3 percent. Lehman Bros. led financial shares higher ahead of next week's earnings from top investment banks. Shares of Lehman surged nearly 14 percent. Over in Europe, banking stocks led a modest rebound on merger talk involving two of Germany's biggest banks. That helped the German Dax, the Paris CAC-40 and the London FTSE cross the finish lines with gains. Conway Gittens, Reuters.