đź•’ Created · Updated

U.S. Stocks Rebound as August Consumer Price Index Data Confirms Sticky Inflation and Strengthens Bets on Federal Reserve Rate Hike

U.S. stock markets rebounded on Friday as investors processed the August Consumer Price Index (CPI) report. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite each rose by approximately 1%, breaking a four-day losing streak. The CPI data showed that consumer prices rose 3.4% on an annual basis and 0.4% on a monthly basis, matching economist expectations and confirming that inflation remains persistent. While headline inflation met expectations, core inflation—which excludes volatile food and energy prices—rose 0.3% month-over-month, slightly exceeding estimates. This data reinforced market expectations that the Federal Reserve will raise interest rates at its upcoming meeting. Traders now place a high probability on a rate hike, with some estimates reaching as high as 90%. Simultaneously, energy prices provided a mixed signal. While international Brent crude and U.S. West Texas Intermediate futures both remained above $100 per barrel, they experienced a slight pullback from their recent surge. Diesel prices reached a record high of over $6 per gallon, driven by supply concerns and the ongoing conflict with Iran. In other news, Oracle reported stronger-than-expected revenue and earnings, while SpaceX is reportedly nearing a $100 billion annual recurring revenue target.

Sources

Paywall and unreadable sources