- US stocks rebounded sharply after four consecutive sessions of losses on Friday
- Dow Jones surged 644.81 points to 52,713.39, S&P 500 gained 76.39 points
- Crude oil prices fell 3% for WTI and Brent, easing earlier Middle East tensions
US stocks rebounded sharply on Friday as investors looked to recover from four consecutive sessions of losses, with easing crude oil prices helping lift sentiment despite growing expectations of a Federal Reserve rate hike.
The Dow Jones Industrial Average surged 644.81 points, or 1.24%, to 52,713.39. The S&P 500 gained 76.39 points, or 1%, to 7,671.61, while the Nasdaq Composite rose 268.52 points, or 1.05%, to 26,355.83.
The gains came after all three major averages had declined for four straight sessions. For the Dow, the losing streak was its longest since late April.
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Oil Prices Retreat
Crude oil prices eased on Friday, giving back part of the sharp gains recorded earlier this week amid escalating tensions in the Middle East. West Texas Intermediate futures fell 3% to $99.28 a barrel, while Brent crude declined 3.1% to $104.32 a barrel.
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Despite Friday's pullback, both benchmarks remained on track for weekly gains of around 8%. The decline in oil prices helped ease concerns among investors following the latest US inflation data.
US Inflation In Focus
The August consumer price index (CPI) showed inflation rose 0.4% month-on-month and 3.4% year-on-year, in line with Dow Jones estimates. However, core CPI, which excludes food and energy prices, increased 0.3% month-on-month, slightly above expectations.
The inflation reading has strengthened expectations that the Federal Reserve could raise interest rates at its upcoming meeting.
Treasury yields were largely steady after the inflation report, although the two-year Treasury yield touched its highest level since July 2024. The move reflected increased expectations of a Federal Reserve rate hike next week. According to the CME Group's FedWatch tool, markets were pricing in an 85.6% probability of a 25-basis-point rate hike.
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