Oil Prices Retreat as US Markets Rise on Inflation Data

US markets edged higher on Friday, despite still posting weekly losses, as oil prices pulled back from a four-month peak.

The Dow Jones Industrial Average rose 1.13%, the S&P 500 gained 1.03%, and the Nasdaq Composite was up 1.15%.

The benchmark 10-year Treasury yield briefly touched its highest in almost three years at 4.9915% immediately after inflation data, which showed a 0.4% increase in consumer prices last month.

Markets now see about an 85% chance of a quarter-point interest rate hike from the Federal Reserve next week, up from around 67% prior to the data.