Wall Street rises as oil prices fall, while inflation keeps fed in focus

U.S. stocks rose sharply on Friday as a decline in oil prices eased some pressure on markets, although stronger-than-expected inflation data kept investors focused on the Federal Reserve’s next interest-rate decision.

U.S. stocks rose sharply on Friday as a decline in oil prices eased some pressure on markets, although stronger-than-expected inflation data kept investors focused on the Federal Reserve’s next interest-rate decision.

The Dow Jones Industrial Average gained 1.02%, while the S&P 500 climbed 1.05%. The Nasdaq Composite advanced 1.22% as investors recovered from several difficult trading sessions.

Oil prices also moved lower, providing some relief to investors concerned that elevated energy costs could further fuel inflation. Brent crude futures fell around 3% but remained above $104 a barrel, while West Texas Intermediate crude also dropped about 3% and traded close to the $100 mark.

Despite the market rebound, inflation remained a major concern. The Consumer Price Index (CPI) increased 0.4% in August after rising just 0.1% in July. On an annual basis, consumer inflation rose 3.4%, matching July’s increase.

The latest inflation figures followed a slightly hotter-than-expected Producer Price Index report released on Thursday. The data has added to uncertainty over the Federal Reserve’s monetary policy and the outlook for interest rates.

According to CME Fed Watch data cited in the report, traders saw an 87% probability of a rate hike at the Fed’s next meeting, up from nearly 70% before the CPI data was released.

Technology and communication stocks led the broader market gains, with 10 of the 11 major S&P 500 sector indexes trading higher.

Dell Technologies was among the biggest gainers, jumping more than 11% to a record high. Hewlett Packard Enterprise rose nearly 10%, while HP Inc. gained around 7%. The moves followed strong results from Oracle, whose shares also edged higher after the company exceeded quarterly expectations.

Shares of ACV Auctions surged 44% after online vehicle auction company Copart agreed to acquire it in a deal valued at nearly $1.9 billion.

The CBOE Volatility Index, widely known as Wall Street’s fear gauge, declined to 15.76.

Although Friday’s gains offered some relief, the Dow remained on track for its steepest weekly decline since March, while the S&P 500 and Nasdaq were set to end their two-week winning streaks.