US equities closed sharply higher on Friday, snapping a four-session losing streak as the recent surge in oil prices and Treasury yields paused, even amid signs of persistent inflation. The S&P 500, Dow, and Nasdaq 100 each gained more than 1%.
Long-dated Treasury yields retreated from multi‑year highs as fuel prices failed to extend this week’s rally, which had been driven by escalating tensions and a series of strikes between the US and Iran in the Persian Gulf. Earlier gains in energy prices since the start of the month had been expected to further aggravate an already elevated inflation outlook. Headline inflation for August held at 3.4%, reinforcing expectations that the Federal Reserve will raise interest rates on Wednesday.
Credit‑sensitive segments of the market, including heavily indebted AI hyperscalers and banks, remained weaker on the week despite posting gains during Friday’s session. Oracle outperformed, jumping 5.5% after reporting strong growth in its cloud infrastructure business.
For the week, the Dow was on track to fall 1.4%, while the S&P 500 and Nasdaq 100 were each set to finish about 0.6% lower.
