Dow Rises as Oil Prices Drop Following August CPI Report
U.S. stocks rebounded on Friday after a four-day losing streak, driven by falling oil prices despite an uptick in consumer inflation that supports the case for another Federal Reserve rate hike. The Dow Jones Industrial Average surged 622 points (1.2%), while both the S&P 500 and Nasdaq Composite rose 1.1%. West Texas Intermediate crude fell 3% to $99.28 per barrel, with Brent crude down 3.1% at $104.32 a barrel. The August CPI report showed consumer prices rising by 0.4% from the previous month and 3.4% year-over-year, while core inflation was slightly higher than expected at 0.3%. The data pushed traders to assign an 85.6% probability of a Fed rate hike in its next meeting. Bond yields were mixed: the 10-year Treasury yield dropped to 4.92%, but the 2-year yield hit a high since July 2024. Investor sentiment shifted toward growth stocks, led by technology firms and bolstered by Oracle's strong earnings report.
Tickers: $SPGI
Topics: CPI report Dow Jones Federal Reserve Nasdaq Composite oil prices S&P 500