Stocks Surge Despite Rate Hike Odds and Inflation Data
The US stock market indexes rose on Friday despite strong economic data and an almost certain interest rate hike next week. The Nasdaq Composite gained 1.3%, the S&P 500 added 1.1%, and the Dow Jones Industrial Average climbed 1%. Consumer prices increased 0.4% in August and 3.4% from a year ago, with core inflation slightly above expectations.
The Federal Reserve's rate hike odds shot past 85%, according to CME Group's FedWatch tool. Brent crude fell 2.7% but is still on pace for an 8% weekly gain. The falling oil prices outweighed the heavy inflation report and contributed to the stock market's rise.
Caterpillar rose 2.1%, Apple climbed 2.5%, and Alphabet gained 2.7%. These tech titans' gains explained about half of the Nasdaq Composite's move, but they didn't have any news of their own on Friday.