* US consumer spending, inflation data keep rate hikes on
table
* Wall St ends lower as early gains slip away
* Oil prices turn negative as traders take profits
* Miners help drive European shares to three-week high
(Updates with close of U.S. markets)
By Lewis Krauskopf
NEW YORK, Feb 26 (Reuters) - The U.S. dollar jumped on
Friday and Wall Street's stock rally faded as fresh economic
data kept alive Federal Reserve rate increases, while oil prices
turned negative late in the session.
The S&P 500 ended slightly lower but finished the week up
1.6 percent. Europe's FTSEurofirst 300 stock index .FTEU3
tallied a 1.6-percent rise on Friday, fueled by strength in
mining shares as industrial metals such as copper CMCU3 and
aluminum CMAL3 gained.
The dollar rose broadly and the dollar index .DXY , a
measure of the greenback's value against six major currencies,
gained 0.8 percent to post its best weekly performance since
November. Against the Japanese yen, the dollar rose to a more
than one-week high.
Treasury yields also rose after data showed U.S. consumer
spending rose solidly in January and underlying inflation picked
up by the most in four years. A report also showed U.S. gross
domestic product growth in the fourth quarter was revised
higher, to a 1.0 percent annual rate.
With equity markets off to a weak start in 2016 amid
concerns about an economic slowdown, investors have been
awaiting the Fed's next policy move after the central bank
raised rates in December.
Federal funds futures FFc1 implied traders see a
36-percent chance of the Fed raising rates in June and
53-percent chance in December, both above Thursday's levels,
according to CME Group's (O:CME) FedWatch program.
"This information today, while actually good for Main
Street, is less than good for a Wall Street that has become
addicted to the Fed's largesse," said Mark Luschini, chief
investment strategist at Janney Montgomery Scott in
Philadelphia.
The Dow Jones industrial average .DJI fell 57.32 points,
or 0.34 percent, to 16,639.97 and the S&P 500 .SPX lost 3.65
points, or 0.19 percent, to 1,948.05. The Nasdaq Composite
.IXIC added 8.27 points, or 0.18 percent, to 4,590.47.
European equities rallied for a second day, for a 1.6
percent gain on the week.
MSCI's gauge of global stock markets .MIWD00000PUS was up
just 0.1 percent. The index was set for its biggest two-week
percentage increase since October.
With oil's steep 1-1/2-year slide, equities' performance has
been tightly linked to the commodity's daily fluctuations, with
investors viewing oil as a proxy for the health of the global
economy.
After an initial rally that pushed benchmark Brent crude
prices to their highest level since early January, oil prices
faded as players took profits on winning positions.
U.S. crude CLc1 settled down 0.9 percent at $32.78 a
barrel, while Brent settled down 0.5 percent at $35.10 a barrel.
For the week, U.S. crude gained about 11 percent.
Benchmark 10-year notes US10YT=RR fell 21/32 in price to
yield 1.77 percent, up from 1.70 percent late Thursday.
"We got some pretty surprising GDP data, an upward revision,
and not too many people had pegged that," said Thomas Simons, a
money market economist at Jefferies LLC in New York.