Inflation Fears Boost Rate Hike Expectations on Wall Street

Wall Street ticked up on Friday after a volatile week, despite oil prices dipping from their four-month high. The accelerating US consumer inflation boosted expectations for an interest rate hike from the Federal Reserve next week.

The Consumer Price Index increased 0.4 percent last month after edging up 0.1 percent in July. Traders added to bets for a rate hike, seeing about an 85 percent chance of a quarter-point hike compared to around 67 percent prior to the data.

Bond yields remained elevated as oil prices hovered around $100 a barrel. The benchmark 10-year Treasury yield briefly touched its highest in almost three years at 4.9915 percent immediately after the inflation data.