S&P 500 Gains 0.9% as Oil Prices Retreat and Inflation Data Aligns with Forecasts
US equities reversed a four-day slide on Friday, driven by a drop in crude oil prices and inflation figures that matched economic expectations.
The S&P 500 index rose 0.9% on Friday, ending its longest losing streak since June. The Dow Jones Industrial Average added 509 points, or 1%, while the Nasdaq composite also climbed 1%.
Brent crude oil prices fell 2.8% to settle at $104.61 per barrel after trading near $110 overnight. This decline in energy costs helped alleviate recent pressure on broader inflation metrics.
Inflation data meets market expectations
US consumer prices rose 3.4% year-over-year last month. This figure was close to the consensus forecast from economists and Wall Street analysts.
The data supports the view that the Federal Reserve will raise its main interest rate at next week's meeting. Traders see this action as necessary to curb persistent price increases.
Treasury yields adjust to rate hike outlook
The yield on two-year Treasury notes increased to 4.62% from 4.56%. This movement reflects updated market pricing for upcoming Federal Reserve policy decisions.
Longer-term yields remained relatively stable. The 10-year Treasury yield rose to 4.97%, while the 30-year yield dipped slightly to 5.36%.
Consumer sentiment declines across political lines
University of Michigan data shows US consumer sentiment is falling. Expectations for inflation over the next year jumped to 4.6% from 4.0%.
This is the highest reading since June. Higher inflation expectations can trigger behaviors that worsen price pressures, complicating the Federal Reserve's mandate. According to GN markets/inflation (en-US), these trends remain a key focus for policymakers.
Individual stocks showed mixed results. Kroger shares rose 2.7% after reporting stronger quarterly profits than expected. ACV Auctions surged 44.2% following an acquisition offer from Copart.
