Oil Price Surge and Fed Hike Jitters Offset Wall Street Rebound

US stocks staged a rebound on Friday, snapping a four-session losing streak as technology gains and lower oil prices offset inflation concerns. The Dow Jones Industrial Average rose by 509.19 points (0.98%) to close at 52,573.29, while the S&P 500 Index gained 65.28 points (0.86%) to reach 7,656.98.

The Nasdaq Composite Index also surged, increasing by 251.31 points (0.96%) to 26,333.04. Tech stocks led the charge, with Dell Technologies surging 12% after RBC initiated coverage with a 'Buy' rating and a $640 price target. Adobe added 1.4% on strong quarterly results.

Oracle's earnings also had an impact, climbing as much as 8.5% before turning negative late in the session to finish 1.7% lower. However, the initial optimism around its numbers still lifted peers such as Hewlett Packard Enterprise, which rose 12.4% amid its recent collaboration with Oracle.

On the macro side, crude oil futures eased 1.8% to $100.60 a barrel, and investors mostly looked past a slight rise in Treasury yields after a mixed August CPI report. The Federal Reserve's 2% target remains elusive, with core CPI increasing 0.3% versus the 0.2% expected.

Meanwhile, the ASX 200 opened little changed on Monday, adding only 0.7 points (0.01%) to 8,741.9. However, caution came from a near-3% jump in Brent crude after fresh strikes on Saudi Arabia and on ships in the Gulf. Analysts fear oil prices could remain elevated for a prolonged period, stoking global inflation.

The Strait of Hormuz and the Bab el-Mandeb shipping routes are under threat, with markets pricing in around an 85% chance the Federal Reserve will lift rates by 25 basis points on Wednesday (Thursday AEST). The Fed's credibility is at stake if it does not deliver this week, according to Brian Martin, head of G3 Economics at ANZ.