Wall Street Futures Recover as Oil Prices Slide
Equity futures rebounded after oil prices fell, reinforcing expectations for a Federal Reserve rate hike next week.
Wall Street futures recovered on Friday as oil prices retreated. This move reinforced expectations that the Federal Reserve will raise interest rates next week to combat inflation. The S&P 500 index climbed 0.86% to close at 7,656.98 points. The Nasdaq gained 0.96% to finish at 26,333.04 points. The Dow Jones Industrial Average rose 0.98% to 52,573.29 points.
Interest rate futures now reflect a nearly 90% probability of a rate increase at the central bank's Wednesday meeting. This is up from a 72% likelihood on Thursday. U.S. consumer prices accelerated last month as gasoline costs rebounded. This added pressure on the Fed to tighten monetary policy.
Tech Stocks Lead Sector Gains
Dell shares soared 12% to a record high. Hewlett Packard Enterprise jumped 12% and HP gained 8.4% after Oracle's quarterly results topped estimates. Oracle dipped 1.8% despite the strong peer performance. Nine of the 11 S&P 500 sector indexes rose during the session.
Communication services led the gains with a 1.35% increase. Consumer discretionary followed with a 1.13% rise. Volume on U.S. exchanges was relatively light at 14.0 billion shares traded. This compares to an average of 14.9 billion shares over the previous 20 sessions.
Inflation Data Drives Policy Expectations
The CBOE Volatility Index fell 2 points to 15.88. This rally follows recent nervousness related to inflation and rising long-term Treasury yields. The S&P 500 is down about 2% from its record-high close on August 13. However, it remains up 12% in 2026.
For the week, the S&P 500 dipped 0.8% and the Nasdaq lost 0.7%. The benchmark is trading at 19 times expected earnings. This is its cheapest valuation since April 2025.
Oil Prices Ease Amid Supply Concerns
Brent crude futures slipped almost 3% but remained above $104 a barrel. Oil prices were still up around 9% for the week. Attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.
Shares of ACV Auctions soared 44% after Copart agreed to buy it. The online vehicle auctioneer deal is valued at nearly $1.9 billion. This transaction highlights continued consolidation in the digital asset space. According to GN auto markets/indices, broader market sentiment remains cautious despite the weekly gains.
