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The S&P 500 climbed 0.86 percent to end at 7,656.98 points on Friday while the Nasdaq Composite rose 0.96 percent and the Dow Jones Industrial Average gained 0.98 percent according to Reuters market data. The advances occurred as oil prices retreated and fresh inflation figures reinforced expectations for Federal Reserve action at its September policy meeting. Investors appeared to take the data as confirmation that policymakers would address price pressures even as higher rates typically pressure valuations.
The Labor Department reported that the consumer price index rose 0.4 percent in August after a 0.1 percent gain in July a Reuters dispatch noted. Core prices excluding food and energy increased 0.3 percent exceeding forecasts while gasoline costs rebounded after two months of declines. The pickup in headline inflation came amid renewed energy price surges tied to geopolitical tensions in the Middle East.
Interest rate futures now reflect nearly a 90 percent probability of a quarter point hike at the Federal Reserve’s next meeting CME Group figures show. That likelihood had stood near 72 percent before the report’s release. The shift leaves little doubt about the central bank’s near term path according to trading tools monitored across Wall Street.
Thomas Martin senior portfolio manager at GLOBALT Investments in Atlanta said “That’s pretty much as close to a slam dunk as you’re going to get.” He added “The Fed will do the right thing and raise rates and that is good at the margin for keeping inflation in check.” Martin spoke as traders positioned for the central bank’s Wednesday announcement following the data release.
Hardware stocks led market gains with Dell Technologies reaching a record high while the broader technology sector climbed on continued artificial intelligence infrastructure demand Reuters reported. Oracle shares moved against the trend declining 1.8 percent on the session. The performance highlighted selective strength in equities even as rate expectations shifted.
The S&P 500 has risen about 11 percent so far in 2026 a Bloomberg compilation of market data indicated supported by strong corporate earnings in technology and related fields. The index had pulled back from its mid August record but recovered ground on Friday’s trading. Ongoing investment in artificial intelligence has helped offset some monetary policy concerns throughout the year.
Brent crude fell 2.7 percent to settle at 104.68 dollars a barrel helping ease some inflationary worries according to energy market reports. The drop in oil prices contributed to positive sentiment across equity sectors despite the outlook for tighter policy. Friday’s session also marked 25 years since the September 11 attacks which had previously led to a prolonged market closure.
