US Stocks Rebound as Oil Prices Ease and Inflation Data Meets Expectations

US stocks bounced back on Friday after oil prices retreated and inflation data came in line with expectations, ending a four-day losing streak for the S&P 500.

The S&P 500 climbed 1.1%, while the Dow Jones Industrial Average rose 554 points or 1.1% as of 11:45 am Eastern time, and the Nasdaq composite was up 1.3%.

The easing oil prices helped take some pressure off inflation, which remains high at 3.4% year-over-year, close to what economists expected.

This led traders to strengthen their expectations that the Federal Reserve will hike interest rates next week, a move aimed at curbing inflation by making borrowing more expensive and slowing down the economy.