US Stocks Rebound on Eased Oil Prices and Inflation Data
US stocks rebounded on Friday after oil prices eased and inflation data came in line with expectations, helping to calm market jitters.
The S&P 500 climbed 1% and was on track to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average was up 479 points, or 0.9%, as of 10:30 am Eastern time, and the Nasdaq composite was 1.2% higher.
The pullback in oil prices, which had jumped to their highest levels since May due to the ongoing war with Iran, took some pressure off inflation, which remains stubbornly high. A report on Friday showed that US consumers paid 3.4% more for gasoline, food, and other costs of living last month than a year earlier.
Economists say hikes in interest rates by the Federal Reserve could help to bring down inflation, but longer-term yields actually eased. This could be an indication that investors see upcoming hikes as helping to keep control of inflation over the longer term.