US stocks rose on Friday as investors digested the Consumer Price Index data, which showed inflation remained sticky and cemented bets that the Federal Reserve will hike interest rates next week.
The Dow Industrial Average (^DJI) and tech-heavy Nasdaq Composite (^IXIC) rose 0.9% while the S&P 500 (^GSPC) rose 0.8%. The major indexes posted weekly declines, however, after a four-day losing streak.
Investors turned their attention to the Consumer Price Index, the last piece of inflation data before Federal Reserve policymakers convene next week. Overall prices rose 0.4% on a monthly basis and 3.4% on an annual basis, which were in line with economists' expectations and slightly hotter than July's reading.
But after stripping out volatile food and energy prices, the Fed's preferred reading, CPI rose 0.3%, compared to estimates for 0.2%.
Friday's CPI report prompted traders to ramp up their bets that the Fed will raise interest rates this month. Markets are now pricing in a roughly 87% chance the Fed raises interest rates by 25 basis points at the FOMC meeting next week, according to the CME's Fedwatch tool. That's up from 72% a day ago and 50% a week ago.
#week #next
The Dow Industrial Average (^DJI) and tech-heavy Nasdaq Composite (^IXIC) rose 0.9% while the S&P 500 (^GSPC) rose 0.8%. The major indexes posted weekly declines, however, after a four-day losing streak.
Investors turned their attention to the Consumer Price Index, the last piece of inflation data before Federal Reserve policymakers convene next week. Overall prices rose 0.4% on a monthly basis and 3.4% on an annual basis, which were in line with economists' expectations and slightly hotter than July's reading.
But after stripping out volatile food and energy prices, the Fed's preferred reading, CPI rose 0.3%, compared to estimates for 0.2%.
Friday's CPI report prompted traders to ramp up their bets that the Fed will raise interest rates this month. Markets are now pricing in a roughly 87% chance the Fed raises interest rates by 25 basis points at the FOMC meeting next week, according to the CME's Fedwatch tool. That's up from 72% a day ago and 50% a week ago.
#week #next
1 hr. ago
