U.S. stocks jumped more than 1% following the release of inflation data

U.S. stocks rose sharply in the first few minutes after the market opened on September 11. One of the main reasons was the August inflation data: on a core basis, it came in line with economists’ forecasts. In addition, falling oil prices are having a positive impact on the market: the price of U.S. WTI crude has once again dropped below $100 per barrel.

The S&P 500 broad-market index rose 1.1%. The tech-heavy Nasdaq Composite rose by about the same amount. The blue-chip Dow Jones Industrial Average outperformed them, gaining 1.2%.

Yields on U.S. Treasury bonds showed little change during Friday's trading session, although the yield on two-year Treasuries reached its highest level since July 2024, according to CNBC.

The indices are poised to close higher at the end of the trading session for the first time this week—after four consecutive days of declines. For the Dow, this marks the longest losing streak since late April, according to CNBC.

The Consumer Price Index (CPI) in the U.S. rose 3.4% year-over-year in August—slightly more than economists had expected. However, on a core basis—excluding volatile food and energy prices—it rose 2.4%, in line with forecasts. Following the release of the data, traders now see the probability of an interest rate hike at the next U.S. Federal Reserve (Fed) meeting on September 15–16 as exceeding 85%, according to the CME Group’s FedWatch tool.

“The discussion quickly shifted from whether the Fed would raise [the rate] to the more important question of how many hikes this cycle will ultimately require. We do not expect the Fed to do this just once and then stop. This is no longer simply a matter of fine-tuning the economy. After half a decade of inflation above the target, policymakers will likely decide that restoring price stability will require more than one rate hike,” said Sima Sha, senior global strategist at Principal Asset Management (as quoted by Bloomberg).

The price of WTI crude oil fell nearly 4% during trading on September 11, to $98.5 per barrel. The international benchmark, Brent, lost roughly the same amount and hit a daily low of $107.6 per barrel. Six Gulf countries are discussing the possibility of a meeting with Iran to discuss the future status of the Strait of Hormuz, according to the Financial Times and Bloomberg, citing sources. This could be the first such meeting since the start of the U.S.-Iran conflict in late February. According to Bloomberg’s sources, Oman—which lies on the opposite shore of the strait from Iran—is attempting to organize the meeting. Oman and Iran have been negotiating the rules of navigation in the Strait of Hormuz in recent months.

September is traditionally a weak month for stocks, but recent trends in corporate earnings and capital expenditures point to growth for the remainder of 2026, according to Wells Fargo analysts quoted by CNBC. “Investors will not focus on the uncertainty surrounding high interest rates, high oil prices, and the midterm elections; instead, they’ll focus on continued economic growth and strong earnings through the end of the year and into early 2027, which will drive up stock prices,” the experts wrote.

This article was AI-translated and verified by a human editor