Green day for Russell as Fed chair eases inflation concerns

After opening higher on the session, small caps accelerated into the green as Federal Reserve Chairman Ben Bernanke eased inflation concerns and oil deflated.

At 12:00 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.44, or 0.89%, at 731.69, while the Dow gained 156.82, or 1.37, to 11587.03.

Bernanke, speaking at a conference for central bankers in Jackson Hole, Wyoming on financial stability, said that recent declines in commodity prices and stabilization of the dollar were “encouraging,” and that although the inflation outlook is uncertain, the Federal Reserve will act as needed to maintain price stability. As Bernanke spoke the gains accelerated in the market.

Adding to the glee, oil has sold off $3.42 a barrel to roughly $117.76 midday, as OPEC announced that it would increase output though anxiety surrounding tensions between United States and Russia remain on the radar.

As oil has deflated, the greenback rallied against the euro and the yen after a sharp dip on Thursday.

In other positive trading catalysts, “The Oracle of Omaha,” Waren Buffett, said on CNBC that stocks are “more attractive” today than they were a year ago and that he currently does not have any bearish bets against the dollar. He also said that he has increased a stake in one of his financial firm investments

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