Stocks Rebound as Oil Prices Ease and Inflation Data Comes in Line

US stocks rebounded on Friday after oil prices eased off their recent surge. The S&P 500 climbed 0.9% and broke a four-day losing streak, its longest since June.

The Dow Jones Industrial Average added 1%, with an hour remaining in trading, while the Nasdaq composite rose 1.1%. The rebound was also fueled by an update on inflation across the United States that came in close to economists' expectations.

Oil prices had jumped to their highest levels since May due to the ongoing war with Iran. However, a drop of nearly 3% for Brent oil's price took some pressure off inflation. The price for a barrel of Brent crude fell 2.8% to settle at $104.61 after getting near $110 overnight.

The Federal Reserve is expected to hike its main interest rate next week in an effort to rein in high inflation. Rising expectations for this move drove up the yield of the two-year Treasury, which rose to 4.64% from 4.56% late Thursday.