Stock market today: Live updates
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 24, 2026.
Brendan McDermid | Reuters
Stocks rose Friday, with investors looking to recover from four straight days of declines, as oil prices retreated. Traders also looked past growing expectations of a Federal Reserve rate hike following the latest U.S. inflation reading.
The Dow Jones Industrial Average traded 500 points higher, or 1%. The S&P 500 climbed 0.9%, and the Nasdaq Composite rose by 1%.
The major averages have fallen for four consecutive sessions. For the Dow, it has been the longest daily losing streak since late April.
Crude prices eased, giving back some of the sharp gains seen this week due to escalating tensions in the Middle East. West Texas Intermediate futures dropped 3% to $99.28 per barrel. Brent futures slid 3.1% as well to $104.32 per barrel.
Still, both contracts remained on pace for weekly advances of around 8%. On top of that, the latest U.S. inflation data shows higher energy prices putting upward pressure on consumer goods.
CPI rose 0.4% in August month over month and 3.4% year over year, matching Dow Jones estimates. Core CPI, which excludes energy and food, climbed 0.3% from the month prior, slightly more than expected.
Yields were mostly steady after the report, though the 2-year Treasury yield touched its highest level since July 2024, reflecting increasing expectations of a Federal Reserve rate hike. The CME Group’s FedWatch tool shows an 85.6% chance of a quarter-point rate hike next week.
“The debate has quickly shifted from whether the Fed will hike to the more important question of how many hikes this cycle will ultimately require,” Seema Shah, chief global strategist at Principal Asset Management, said. “We do not expect the Fed to be one-and-done. This is no longer simply about fine-tuning the economy. After half a decade of above-target inflation, policymakers are likely to conclude that more than one hike will be needed to re-establish price stability.”
Tech stocks were showing solid gains early Friday as investors rotated back into growth. A strong earnings report from cloud computing company Oracle added confidence to the AI thesis this week.
