US Stocks End Higher on Strong Inflation Data, Rate Hike Bets Soar
US stocks ended higher on Friday as strong inflation data reinforced expectations of a Federal Reserve rate hike next week. The S&P 500 gained 64.84 points, or 0.85%, to end at 7,656.54 points, while the Nasdaq Composite gained 245.85 points, or 0.94%, to 26,327.58.
The strong consumer price data, which showed a rebound in gasoline prices after two straight monthly declines, added pressure on the Fed to tighten monetary policy and fight inflation. Interest rate futures now reflect a nearly 90% probability that the central bank will raise rates at its policy meeting on Wednesday, according to the CME FedWatch tool.
Dell soared to a record high, while Hewlett Packard Enterprise and HP rallied after Oracle's quarterly results topped estimates. However, Oracle shares dipped. Oil prices fell but remained up around 9% for the week due to concerns about prolonged supply disruptions along Middle East shipping routes.