(Sharecast News) - US stocks rose for the first time in five days on Friday following a much-anticipated inflation report, which cemented expectations for a Federal Reserve rate hike next week, with sentiment bolstered by oil prices snapping an eight-session winning streak.
The Dow and Nasdaq both closed 1.0% higher and the S&P 500 gained 0.9%, while the VIX volatility index dropped 11.2%. Both the S&P 500 and Nasdaq fell to a six-week low on Thursday.
The headline US inflation rate held steady at 3.4% in August, matching July's reading and the consensus forecast. Core inflation, which excludes food and energy costs that can be volatile month to month, eased to 2.4% in August from 2.5% in July.
The recent escalation in the Middle East conflict had sparked another surge in energy prices over the past week, increasing expectations that the Fed may act next week to stop inflation from getting out of control. Markets are now pricing in a 90% chance of a 25 basis-point rate hike next week, up from 70% before the data.
"We now expect the Fed to begin a hiking cycle in September after August CPI showed a lack of progress. Forward guidance will still be lacking, but SEP projections [the dot plot] should be hawkish," said TD Securities in a note. "We expect three total hikes in this hiking cycle, with additional hikes in October and January."
Brent crude fell 2.8% to $104.61 a barrel, but still ended 8.7% higher compared with last week, while WTI fell 2.4% to $100.05, finishing the week 9.4% higher.
In other news, the University of Michigan consumer sentiment index fell to 47.8 in September from 51.7 in August, coming in well below the 51 reading expected by analysts.
Oracle's share price initially rose on Friday, but dropped into the red by the close despite the software giant reporting sharply higher first-quarter profit and revenue. Oracle reported a 60% year-on-year surge in net profits to $4.76bn in the three months to 31 August, with adjusted earnings of $1.92 a share comfortably ahead of the $1.74 consensus forecast. Revenue rose 30% year-on-year to a record $19.3bn, also beating expectations of $19.14bn.
GameStop jumped after its boss Ryan Cohen revealed he bought 1m shares, taking his stake to over $800m at current market prices.
Meanwhile, Kroger shares advanced after the retailer's second-quarter numbers, with profits ahead of forecasts though revenues were slightly short.
Dow Jones - Risers
Apple Inc. (AAPL) $332.27 4.12%
International Business Machines Corporation (CDI) (IBM) $243.29 3.96%
Cisco Systems Inc. (CSCO) $112.13 3.04%
Boeing Co. (BA) $210.45 2.76%
Travelers Company Inc. (TRV) $375.20 2.08%
Salesforce.Com Inc. (CRM) $247.72 1.94%
Microsoft Corp. (MSFT) $495.63 1.81%
Caterpillar Inc. (CAT) $818.57 1.69%
Procter & Gamble Co. (PG) $145.27 1.59%
3M Co. (MMM) $164.97 1.30%
Dow Jones - Fallers
Unitedhealth Group Inc. (UNH) $379.09 -2.37%
Amgen Inc. (AMGN) $377.35 -2.37%
Dow Chemical Co. (DOW) $29.03 -2.06%
Merck & Co. Inc. (MRK) $143.93 -0.54%
Johnson & Johnson (JNJ) $265.58 -0.29%
McDonald's Corp. (MCD) $252.53 -0.21%
S&P 500 - Risers
Skyworks Solutions Inc. (SWKS) $88.35 16.83%
Hewlett Packard Enterprise (HPE) $62.09 12.42%
Qorvo, Inc. (QRVO) $116.65 11.72%
NetApp Inc. (NTAP) $199.28 8.84%
HP Inc (HPQ) $35.48 8.40%
Capri Holdings Limited (CPRI) $13.89 7.76%
Macy's Inc. (M) $22.08 7.71%
Charter Communications Inc. (CHTR) $145.77 7.67%
TripAdvisor Inc. (TRIP) $9.09 6.82%
Bath & Body Works, Inc. (BBWI) $18.57 6.42%
S&P 500 - Fallers
Coterra Energy Inc. (CTRA) $32.56 -8.62%
Copart Inc. (CPRT) $29.95 -6.25%
FMC Corp. (FMC) $11.40 -5.63%
Albemarle Corp. (ALB) $117.52 -3.76%
Jefferies Financial Group Inc. (JEF) $51.96 -3.65%
Equity Residential (EQR) $63.66 -3.50%
Seagate Technology Plc (STX) $830.17 -3.13%
Nasdaq Inc (NDAQ) $91.19 -2.99%
Western Digital Corp. (WDC) $447.18 -2.89%
Edwards Lifesciences Corp. (EW) $84.37 -2.77%
Nasdaq 100 - Risers
Skyworks Solutions Inc. (SWKS) $88.35 16.83%
Charter Communications Inc. (CHTR) $145.77 7.67%
Intuitive Surgical Inc. (ISRG) $369.15 5.80%
Analog Devices Inc. (ADI) $378.78 5.43%
QUALCOMM Inc. (QCOM) $181.97 4.44%
Hasbro Inc (HAS) $91.54 4.35%
Expedia Group Inc. (EXPE) $280.83 4.30%
Apple Inc. (AAPL) $332.27 4.12%
Texas Instruments Inc (TXN) $268.70 4.09%
eBay Inc. (EBAY) $107.75 4.07%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Seagate Technology Plc (STX) $830.17 -3.13%
Check Point Software Technologies Ltd. (CHKP) $131.64 -3.08%
Western Digital Corp. (WDC) $447.18 -2.89%
Incyte Corp. (INCY) $121.47 -2.57%
Liberty Global plc Series C (LBTYK) $10.15 -2.50%
Amgen Inc. (AMGN) $377.35 -2.37%
Regeneron Pharmaceuticals Inc. (REGN) $781.49 -2.35%
Lam Research Corp. (LRCX) $298.22 -2.27%
Wynn Resorts Ltd. (WYNN) $87.70 -1.50%
41.52 (0.39%)
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