Stocks Rebound as Oil Prices Ease and Inflation Update Comes in Near Expectations
US stocks are rebounding on Friday after oil prices eased and an inflation update came in near expectations. The S&P 500 climbed 1% to break a four-day losing streak, its longest since June.
The Dow Jones Industrial Average was up 479 points, or 0.9%, as of 10:30 a.m. Eastern time, while the Nasdaq composite rose 1.2%. The pullback in oil prices helped calm the market after it jumped to its highest levels since May due to the ongoing war with Iran.
The price for a barrel of Brent crude fell 2.5% to $104.93 after reaching near $110 overnight. Despite still-high inflation, which rose 3.4% last month compared to the same period a year ago, the data was close to economists' expectations and Wall Street's forecasts.
The Federal Reserve is likely to hike its main interest rate at its meeting next week, a move that would typically slow the economy and help control inflation. The rising expectations for an upcoming rate hike sent the yield of the two-year Treasury to 4.60% from 4.56% late Thursday.