US Stocks Rise as Inflation Fears Cement Rate Hike Bets

The US stock market closed higher on Friday as oil prices retreated and strong consumer price data reinforced expectations that the Federal Reserve will raise interest rates next week to combat inflation.

According to the CME FedWatch tool, there is now a nearly 90% probability that the central bank will increase rates at its policy meeting on Wednesday, up from a 72% likelihood the previous day.

The S&P 500 index climbed 0.86% to close at 7,656.98 points, while the Dow Jones Industrial Average rose 1% to 52,573.29 points, and the Nasdaq gained 1% to 26,333.04 points.