Stocks Rebound on Lower Oil Prices and Steady Inflation

US stocks rebounded Friday after oil prices declined and inflation data came in line with expectations. The S&P 500 climbed 0.9% to snap a four-day losing streak, its longest since June.

The Dow Jones Industrial Average jumped 509 points, or 1%, while the Nasdaq composite rose 1%. Oil prices had surged to their highest levels since May due to the ongoing war with Iran, but eased off by 2.8% to settle at $104.61 per barrel of Brent crude.

Despite still-high inflation, which remains a concern, the data strengthened expectations that the Federal Reserve will hike its main interest rate next week. Rising expectations for an upcoming hike drove up the yield of the two-year Treasury to 4.62% from 4.56% late Thursday.