Wall Street stocks moved ahead for a second day as investors made year-end portfolio adjustments and inflation fighters left interest rates unchanged.

The Dow Jones industrial average rose 53.72 to close at 7,976.31, but receded from a fleeting early afternoon surge that drove the index of blue chip stocks up 97 points.

Concerns over the economic impact of the Asian currency crisis on American businesses have eased in recent days as South Korea and Japan have outlined plans to solve regional problems.

With the region's troubles less on investors' minds, analysts said buyers were finalising their investments at the end of a strong year on Wall Street.

The Commerce Department said the Consumer Price Index made its smallest gains in five months in November, and the prices of such products as petrol and airline sales actually fell.

The rise held the annualised inflation rate for the first 11 months of the year to 1.8 per cent.