Fed Rate Hike Expectations Boost Wall Street as Oil Prices Retreat

Wall Street experienced a surge on Friday as oil prices retreated and strong consumer price data reinforced expectations that the Federal Reserve will raise interest rates next week to combat inflation.

The S&P 500 climbed 0.86% to close at 7,656.98 points, while the Nasdaq rose 0.96% to 26,333.04 points, and the Dow Jones Industrial Average increased by 0.98% to 52,573.29 points.

The FedWatch tool from the CME indicated a nearly 90% probability that the central bank will raise rates at its policy meeting on Wednesday, up from a 72% likelihood on Thursday.

Thomas Martin, senior portfolio manager at GLOBALT Investments in Atlanta, stated that 'the right thing' for the Fed is to raise interest rates, which would be good for keeping inflation in check.