Inflation Data Release Looms as Fed Rate Hike Odds Soar

The US stock market is bracing for Friday's key inflation data release, which will influence expectations about a potential Federal Reserve interest-rate hike. The August Consumer Price Index (CPI) measure of US inflation will be closely watched by Wall Street.

A high inflation reading could solidify the Fed's decision to raise its benchmark Federal Funds rate, while low inflation might boost chances of leaving rates unchanged.

The CME FedWatch tool put the odds at over 70% that the Fed will hike rates by 25 basis points. This probability surged after crude oil futures rose more than 7% intraday Thursday to top $100 a barrel in New York trading for the first time since May, driven by the ongoing US-Iran conflict.