US Stocks Bounce Back Amid Oil Price Drop

Stocks on Wall Street closed their first winning week in three after oil prices cooled down on Friday, giving investors some relief from the pressure building up due to rising bond yields.

The S&P 500 added 0.5% to break a three-day losing streak marked by big swings caused by increasing yields in the bond market. The main measure of the U.S. stock market's health pulled back within 0.7% of its all-time high set last month.

Oil prices dropped 2.8% to $97.44 per barrel, helping stocks regain strength after a report on U.S. consumer sentiment sent Treasury yields higher in the morning. The University of Michigan survey said consumers are bracing for inflation of 4.6% in the coming year, up from their forecast of 4% the month before.

The rising expectations for high inflation could encourage behavior that leads to a vicious cycle making the cost of living spiral even higher, according to experts. However, strong profit reports from U.S. companies such as Akamai Technologies and Costco Wholesale helped the stock market remain resilient despite worries about high inflation and oil prices.