US Stocks Rebound on Easing Oil Prices, Inflation Update

US stocks staged a rebound on Friday, driven by easing oil prices and an inflation update that came in close to economists' expectations.

The S&P 500 climbed 0.9% and snapped its four-day losing streak, while the Dow Jones Industrial Average jumped 509 points, or 1%, and the Nasdaq composite rose 1%.

Oil prices had surged to their highest levels since May due to the ongoing war with Iran, but a 2.8% drop in Brent crude helped alleviate some of the pressure on inflation.

Despite still-high prices, the 3.4% year-over-year increase in consumer costs was near what economists expected, and it strengthened expectations that the Federal Reserve will hike its main interest rate at its meeting next week.