US Stocks Rebound as Oil Prices Ease, Inflation Data Comes in Near Expectations
US stocks rebounded on Friday, reversing much of their losses for the week after oil prices eased off their recent surge.
The S&P 500 climbed 1% and was poised to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average rose 479 points, or 0.9%, while the Nasdaq composite increased by 1.2%.
The drop in oil prices, which had jumped to their highest levels since May due to the ongoing conflict with Iran, helped take pressure off inflation. A report showed that US consumers paid 3.4% more for gasoline, food, and other living costs last month compared to a year earlier.
Economists said the data was close to expectations and strengthened hopes among traders that the Federal Reserve would hike its main interest rate at its meeting next week. Such moves are typically used by the Fed to combat high inflation by making borrowing more expensive, slowing the economy, and reducing fuel for further price increases.