Inflation Didn't Scare Investors: U.S. Indices Gained Nearly 1% After Four Days of Losses

U.S. stocks rose on Friday as investors sought to recoup losses following four consecutive sessions of declines. U.S. inflation data released on Friday came in line with forecasts, but traders did not place much weight on heightened expectations of a Fed rate hike, according to CNBC. The rise in stocks was also aided by a relatively small decline in oil prices on September 11—following strong gains throughout the week.

On Friday, the S&P 500 broad-market index rose 0.86% and closed at 7,656.87 points. The Dow Jones Industrial Average (DJIA), an index of blue-chip stocks, gained 0.98% over the day, reaching 52,572.81 points. The Nasdaq Composite, the tech sector index, rose 0.96% to 26,333 points. Prior to this, the major U.S. stock indices had been falling for four consecutive sessions. For the Dow, this was the longest streak of daily losses since late April, CNBC notes.

Over the past week, the S&P 500 fell 0.8%, the DJIA lost 1.57%, and the Nasdaq Composite fell 0.66%.

The Consumer Price Index (CPI) rose 0.4% in August compared with July and 3.4% year-over-year, in line with Dow Jones forecasts, according to CNBC. The core CPI, which excludes food and energy prices, rose 0.3% from the previous month—slightly more than expected. Meanwhile, U.S. Treasury yields remained largely unchanged following the report’s release. However, yields on two-year Treasuries reached their highest level since July 2024, reflecting heightened expectations of a Fed rate hike, the network notes. According to the CME Group’s FedWatch tool, the market estimates the probability of a 0.25 percentage point rate hike next week at 85.6%.

Oil prices fell on Friday, giving back some of this week’s sharp gains, which had been driven by escalating tensions in the Middle East. Brent futures fell 2.6% to $104.8 per barrel, while WTI futures dropped 1.85%, closing at $100.6 per barrel. Nevertheless, over the week, WTI rose nearly 10%, and Brent rose 8.6%. In addition, the latest U.S. inflation data show that rising energy prices are putting further pressure on consumer prices, CNBC notes.

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