Markets Rebound as Oil Prices Retreat
Wall Street recovered much of its weekly losses Friday after oil prices eased and inflation data matched expectations. The S&P 500 gained 0.9%, ending a four-day losing streak. The Dow rose 509 points, or 1%, while the Nasdaq also advanced 1%.
Brent crude fell 2.8% to settle at $104.61 after approaching $110 overnight. Oil had reached its highest levels since May because of the ongoing war with Iran. Its retreat reduced some pressure on inflation and helped calm investors.
Inflation Keeps the Federal Reserve in Focus
Consumer prices were 3.4% higher in August than a year earlier, reflecting costs for gasoline, food and other necessities. Although inflation remained elevated, the reading was close to economists’ forecasts and Wall Street’s expectations.
Traders consequently strengthened their bets that the Federal Reserve would raise its main interest rate the following week. Higher rates restrict borrowing, slow economic activity and can reduce the forces sustaining inflation.
Expectations for a rate increase pushed the two-year Treasury yield to 4.62% from 4.56%. Longer-term yields moved less dramatically. The 10-year yield edged up to 4.97%, while the 30-year yield slipped to 5.36%.
Federal Reserve Chair Kevin Warsh avoided signaling the central bank’s next move. President Donald Trump continued pressing for lower rates, despite persistent concerns about rising prices.
Consumer Confidence and Company Moves
Meanwhile, a preliminary University of Michigan report showed weaker consumer sentiment among both Democrats and Republicans. Expectations for inflation during the coming year rose from 4% to 4.6%, their highest level since June.
Several companies also moved sharply. Kroger gained 2.7% after reporting stronger profit than analysts expected. ACV Auctions surged 44.2% following Copart’s cash acquisition offer, while Copart declined 2.6%. Oracle finished 1.7% lower after an early rally faded.
Overseas markets delivered mixed results. European indexes rose as oil prices eased, and London’s FTSE 100 added 0.4%. Japan’s Nikkei 225 and South Korea’s Kospi each fell by nearly 2%.
References
Choe, S. (2026, September 11). US stocks jump after oil prices ease and an inflation update comes in near expectations. AP News. https://apnews.com/article/financial-markets-stocks-oil-iran-war-bonds-rates-8c3272812f5e9b9238c6a3301921c17a