Tech Stocks Rally as Oil Prices Drop Amid Sticky Inflation
Stocks rebounded on Friday after a four-day losing streak, driven by falling oil prices and mixed inflation data. The Consumer Price Index (CPI) rose more than expected at 0.3% month-over-month when excluding food and energy costs, increasing the likelihood of another Federal Reserve rate hike. Market expectations for tighter monetary policy were reflected in rising yields on the 2-year Treasury note to 4.59%. Tech stocks led gains with Oracle surging after strong AI cloud revenue results. Brent crude futures fell nearly 3% amid ongoing tensions between Iran and the U.S., while key sectors like Communications, Consumer Discretionary, Industrials, and Materials also posted positive returns. The broader market's optimism was tempered by concerns over inflation persisting despite easing energy costs.
Topics: fed rate expectations inflation data oil prices stock market