Stocks Rally on Eased Oil Prices and Near-Expected Inflation
US stocks made a strong comeback on Friday after oil prices eased off their recent surge and an update on inflation came in close to economists' expectations.
The S&P 500 climbed 0.9% and snapped its four-day losing streak, the longest since June. The Dow Jones Industrial Average jumped 509 points, or 1%, and the Nasdaq composite rose 1%.
The pullback in oil prices helped calm the market, with Brent crude falling 2.8% to $104.61 after getting near $110 overnight. This took some pressure off inflation, which remains stubbornly high at 3.4% higher last month than a year earlier.
Economists say hikes in interest rates by the Federal Reserve may be necessary to bring down inflation and restore confidence in the Fed's commitment to keeping prices under control.