Newzstocks are rebounding Friday and clawing back much of their losses for the week after oil prices eased off their recent spurt. An update on inflation across the United States that came in close to economists’ expectations, even if prices are still rising too quickly for everyone's liking, also helped calm the market.The S&P 500 climbed 1% and was on track to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average was up 479 points, or 0.9%, as of 10:30 a.m.
Eastern time, and the Nasdaq composite was 1.2% higher.They got help from a pullback in oil prices, which had jumped to their highest levels since May because of the ongoing war with Iran. The price for a barrel of Brent crude, the international standard, fell 2.5% to $104.93 after getting near $110 overnight.That took a bit of pressure off inflation, which remains stubbornly high. A report on Friday showed that U.S.
consumers had to pay prices for gasoline, food and other costs of living that were 3.4% higher last month than a year earlier.While still high, that was close to what economists expected and what Wall Street was prepared for. The data also strengthened expectations among traders that the Federal Reserve will feel compelled to hike its main interest rate at its meeting next week.Such moves are the typical way the Fed tries to rein in high inflation, and they work by filtering through the bond market, making it more expensive for everyone to borrow money, slowing the economy and hopefully removing fuel for further inflation.The rising expectations for an upcoming hike to rates sent the yield of the two-year Treasury, which moves with guesses for upcoming Fed action, to 4.60% from 4.56% late Thursday.Longer-term yields, though, actually eased. That could be an indication that investors in the bond market see upcoming hikes to rates by the Fed helping to keep control of inflation over the longer term.
The yield on the 10-year Treasury fell to 4.93% from 4.95% late Thursday.Economists say hikes could quiet questions about the Fed's commitment to keeping inflation under control. Worries had risen earlier in the summer about its credibility and whether it would do what’s needed to bring inflation down, even if it causes pain for the economy in the short term.Federal Reserve Chairman Kevin Warsh has been adamant about not giving hints about where… The Dow Jones Industrial Average was up 631 points, or 1.2%, as of 9:35 a.m.
Eastern time, and the Nasdaq composite was 1.1% higher.They got some help from a pullback in oil prices, which jumped earlier this week to their highest levels since May because of the ongoing war with Iran. The price for a barrel of Brent crude, the international standard, fell 3% to $104.42 after getting near $110 overnight.That took some pressure off inflation, which remains far higher than anyone would like. It also firmed expectations on Wall Street that the Federal Reserve will feel compelled to hike its main interest rate at its meeting next week.Such moves are the typical way the Fed tries to rein in high inflation, and they work by filtering through the bond market, making it more expensive for everyone to borrow money, slowing the economy and hopefully removing fuel for further inflation.The rising expectations for rate hikes sent the yield of the two-year Treasury, which moves with guesses for upcoming Fed action, to 4.57% from 4.56% late Thursday.Longer-term yields, though, actually eased.
economy was stronger in July than economists expected.Stock markets were weaker in Asia, where Japan’s Nikkei 225 lost 1.9% and South Korea’s Kospi fell 1… stocks are rebounding and clawing back much of their losses for the week after oil prices eased off their recent spurt. A strong earnings report from tech giant Oracle and an update on inflation across the United States that came in close to economists’ expectations also helped calm the market Friday.
Summary from source