US Stocks Rebound as Oil Prices Ease and Inflation Update Comes in Near Expectations
US stocks rebounded on Friday after oil prices eased off their recent surge and an inflation update came in near expectations, helping to calm market nerves.
The S&P 500 climbed 0.9% and snapped a four-day losing streak, its longest since June. The Dow Jones Industrial Average jumped 509 points, or 1%, and the Nasdaq composite rose 1%.
Oil prices had been driving inflation concerns, but a 2.8% drop in Brent crude to $104.61 helped alleviate some of that pressure. Inflation remains high, with US consumers paying 3.4% more for gasoline, food, and other living costs last month compared to the same period a year ago.
The data was close to what economists had expected, and it strengthened expectations among traders that the Federal Reserve will hike its main interest rate at its meeting next week.