US stock indices finished higher on Friday, snapping a four-session losing streak as the recent surge in oil prices and Treasury yields took a breather. The S&P 500 rose 0.9%, the Dow Jones Industrial Average gained 509 points, and the Nasdaq Composite advanced 0.9%.
Long-dated Treasury yields retreated from multi-year highs, while fuel prices paused after this week’s sharp rally, which had been driven by escalating tensions and reciprocal strikes between the US and Iran in the Persian Gulf. The jump in energy prices had been expected to exacerbate already elevated inflation pressures—headline inflation stood at 3.4% in August—bolstering expectations that the Federal Reserve will raise interest rates on Wednesday.
Credit-sensitive and growth-oriented sectors benefited from the pullback in oil and yields. Alphabet climbed 1.8%, Amazon gained 1.9%, and JPMorgan rose 0.8%. Oracle, however, reversed earlier strength to close down 1.8% despite posting strong earnings results. Chipmakers were broadly higher, with AMD up 2.5% and Intel advancing 2.6%. Dell Technologies jumped 11.9% to a record high after RBC initiated coverage with an “Outperform” rating.
For the week, the major averages still finished lower: the S&P 500 slipped 0.6%, the Nasdaq declined 0.7%, and the Dow lost 426 points.
