US Stocks Rebound as Oil Prices Ease and Inflation Update Hits Expectations

US stocks rose on Friday after oil prices decreased and an inflation update came in line with expectations.

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%.

An inflation update showed that US consumers paid prices for gasoline, food, and other costs of living that were 3.4% higher last month than a year earlier. This was close to what economists expected and what Wall Street was prepared for.

The Federal Reserve's main interest rate hike is now more likely due to rising expectations among traders that the Fed will feel compelled to hike its rate at its meeting next week.