US Stocks Rebound as Oil Prices Ease and Inflation Data Comes in Line
US stocks rebounded on Friday after oil prices eased off their recent surge and an inflation update came in close to economists' expectations.
The S&P 500 rose 0.9% and snapped a four-day losing streak, its longest since June. The Dow Jones Industrial Average jumped 509 points, or 1%, and the Nasdaq composite rose 1%.
Oil prices had risen to their highest levels since May due to the ongoing war with Iran, but they pulled back by 2.8% on Friday, settling at $104.61 per barrel of Brent crude.
The inflation update showed that US consumers paid 3.4% more for gasoline, food, and other costs of living last month than a year earlier. While still high, this was close to what economists expected, and it strengthened expectations among traders that the Federal Reserve will hike its main interest rate next week.
The rising expectations for an upcoming rate hike drove up the yield of the two-year Treasury to 4.62% from 4.56% late Thursday.