Market Update: Stocks Rise Amid Inflation Reports
On Friday, the Nasdaq Composite increased by 1.3%, the S&P 500 by 1.1%, and the Dow Jones Industrial Average by 1.0%. The consumer price index rose by 0.4% in August and 3.4% year-over-year, with core inflation slightly exceeding expectations at 0.3% for the month. These inflation figures have increased the likelihood of a rate hike by the Federal Reserve, with odds now at 86.7% for a quarter-point increase at the upcoming meeting on September 15-16.
Oil prices also contributed to market movements as Brent crude fell by 2.7% to $104.68, though it remains on track for a weekly gain of approximately 8%. Caterpillar, Apple, and Alphabet saw significant gains, with increases of 2.1%, 2.5%, and 2.7%, respectively, bolstering the Nasdaq’s rise.
Additionally, the University of Michigan’s consumer sentiment index dropped by 7.5% to 47.8 in September, marking one of the lowest readings in its history, indicating that consumer expectations for ongoing inflation remain high.
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