US Stocks Rebound as Oil Prices Retreat and Inflation Data Calms Market Fears
US stocks rebounded on Friday as oil prices retreated and inflation data calmed market fears. The Dow Jones Industrial Average surged over 400 points, or 1%, with the Nasdaq composite rising 1.3% higher.
The S&P 500 gained 1.1% and was poised to break a four-day losing streak, its longest since June. A pullback in oil prices, which had spiked earlier this week due to the ongoing war with Iran, also contributed to the market's recovery.
Oil prices fell by 3% to $104.42 after reaching near $110 overnight. This decrease took some pressure off inflation, which remains elevated at 3.4% higher than last year.
Economists had expected inflation data to come in close to their predictions, and the actual numbers met those expectations. The Federal Reserve is likely to hike its main interest rate next week as a result, a move that could help rein in high inflation.