Oil Prices Ease, Inflation Data in Line with Expectations as US Stocks Rebound

U.S. stocks bounced back on Friday as oil prices eased off their recent surge and inflation data came in line with economists' expectations.

The S&P 500 rose 1% and was on track to break a four-day losing streak, its longest since June, while the Dow Jones Industrial Average gained 479 points or 0.9%, and the Nasdaq composite climbed 1.2%.

The oil price drop helped ease pressure on inflation, which remains high. The cost of living in the U.S. increased by 3.4% last month compared to a year ago, close to what economists expected. The data strengthened expectations that the Federal Reserve will hike its main interest rate at its meeting next week.

Such moves typically help rein in high inflation by making borrowing more expensive and slowing down the economy. This sent the yield of the two-year Treasury up to 4.60% from 4.56% late Thursday, signaling expectations for an upcoming Fed hike.