US Stocks Rise Despite Accelerating August Inflation
US stocks rose on Friday despite accelerating August inflation, which increased by 0.4% compared to July's 0.1%. The Consumer Price Index (CPI) was unchanged at 3.4% on an annual basis.
The Dow Jones Industrial Average gained 638.99 points, or 1.23%, to 52,703.09, while the S&P 500 rose 1.05% to 7,671.57. The Nasdaq Composite added 1.08% to 26,362.30.
Joe Saluzzi, co-founder of Themis Trading, said the inflation reading was 'in-line' but would not satisfy either bullish or bearish investors.
The Federal Reserve's next moves are now in focus, with market expectations shifting after the data. Traders saw an 86% chance of a hike at the Fed's next meeting, up from nearly 70% before the inflation report.
Oil prices also provided some relief to markets, dropping more than 3%. The decline in energy prices offered some comfort to investors dealing with concerns over inflation, elevated Treasury yields, and intensifying tensions in the Middle East.