S&P 500 Rises 0.9% as Oil Eases and Inflation Data Aligns with Forecasts
US equities snapped a four-day losing streak Friday. Brent crude settled at $104.61. Core inflation held at 3.4% year-over-year.
The S&P 500 climbed 0.9% on Friday. The index ended a four-day losing streak. This was the longest decline since June. The Dow Jones Industrial Average gained 509 points. The Nasdaq composite rose 1%. These moves reversed much of the weekly losses.
Brent crude oil fell 2.8% to settle at $104.61. The price had approached $110 overnight. This pullback reduced pressure on consumer costs. Inflation data showed prices up 3.4% year-over-year. This figure matched economist expectations. It did not signal a sudden spike in costs.
Treasury yields adjust to rate hike expectations
The two-year Treasury yield rose to 4.62%. It started at 4.56% late Thursday. This move reflects higher bets on a Federal Reserve rate hike. The 10-year yield increased to 4.97% from 4.95%. The 30-year yield eased to 5.36% from 5.37%. Long-term yields remained relatively stable.
Traders expect the Fed to raise its main interest rate next week. This action aims to curb persistent inflation. Higher rates increase borrowing costs. This slows economic activity. It removes fuel for further price increases.
Consumer sentiment declines despite stable inflation
University of Michigan data showed falling consumer sentiment. This decline affected both Democrats and Republicans. One-year inflation expectations jumped to 4.6%. The previous month’s reading was 4.0%. This is the highest level since June. High expectations can worsen inflation through wage and price dynamics.
Federal Reserve Chairman Kevin Warsh avoided signaling future rate moves. He addressed investor concerns in a recent speech. President Donald Trump has pushed for lower interest rates. Market participants focus on data over political statements. Credibility in inflation control remains a key metric.
Corporate earnings drive sector-specific moves
Kroger shares rose 2.7% on stronger quarterly profits. The company maintained its full-year profit forecast. It trimmed its forecast for underlying revenue growth. ACV Auctions stock surged 44.2%. Copart announced a cash acquisition at $10.50 per share. Copart stock fell 2.6% following the announcement.
