US Stocks Recover as Oil Prices Drop and Treasury Yields Ease

The US stock market closed the week on a positive note, breaking a three-day losing streak. The S&P 500 added 0.5% to close at 7,743.41, while the Dow Jones Industrial Average rose 478 points, or 0.9%, and the Nasdaq composite climbed 0.5%. The main measure of the US stock market's health pulled back within 0.7% of its all-time high set last month.

The price for a barrel of Brent oil dropped 2.8% to $97.44 per barrel, giving stocks a boost. Oil prices have been yo-yoing due to uncertainty about the war with Iran and when oil will flow freely again from the Middle East.

However, trading was shaky on Wall Street Friday after a report on US consumer sentiment sent Treasury yields higher in the morning. The University of Michigan said consumers are bracing for inflation of 4.6% in the coming year, up from their forecast of 4% the month before.

The rising expectations for high inflation could lead to a vicious cycle that makes living costs spiral even higher. Consumers told the survey that buying certain products now would help them avoid higher prices in the future, which could encourage sellers to raise prices further.