U.S. Stocks Rebound Friday as Oil Retreats, Inflation Data Meets Expectations

September 11, 2026

U.S. stocks closed higher on Friday, breaking a four-day losing streak, as a pullback in oil prices and an in-line inflation report provided relief to investors ahead of next week’s Federal Reserve meeting. The S&P 500 climbed 0.9% to 7,656.98, the Dow Jones Industrial Average rose 1.0% to 52,573.29, and the Nasdaq Composite gained 1.0% to 26,333.04.

Despite Friday’s gains, all three major indexes finished the week with losses, snapping multi-week winning streaks. The S&P 500 fell 0.8% for the week, while the Dow and Nasdaq declined 1.57% and 0.66%, respectively.

Oil Prices Retreat from Multi-Month Highs

Brent crude dropped 3.6% to $103.78 a barrel on Friday, while West Texas Intermediate fell 2.2% to $99.23. The pullback came after oil surged earlier in the week, with Brent briefly topping $107 a barrel and WTI hitting $100 for the first time since May.

The rally in oil was driven by escalating Middle East tensions, particularly concerns over shipping routes and potential supply disruptions. U.S. crude output from Saudi Arabia reportedly plunged to its lowest level since 1990. However, reports that Middle Eastern foreign ministers were working toward a temporary agreement with Iran helped cool prices on Friday.

Inflation Report Shows Sticky Core Pressures

The August Consumer Price Index rose 0.4% month-over-month, up sharply from July’s 0.1% gain, according to the Bureau of Labor Statistics. The annual rate held steady at 3.4%.

Gasoline prices were the primary driver, jumping 3.9% in August and accounting for more than one-third of the monthly increase. Energy prices overall surged 16.3% year-over-year, with gasoline up 27.4%.

Core CPI, which excludes food and energy, rose 0.3% for the month—slightly above the 0.2% consensus estimate. On a year-over-year basis, core inflation measured 2.4%, down modestly from 2.5% in July. Communication, airline fares, and used vehicles drove the monthly core increase, while medical care and auto insurance declined.

Fed Rate Hike Odds Climb

Following the data, traders priced in roughly 90% odds that the Federal Reserve will raise interest rates at its September 15-16 meeting, up from around 70% before the report. Market participants now fully expect two rate hikes by year-end.

The report arrives as Fed officials weigh persistent inflation against economic growth. Fed Governor Christopher Waller said last week that August’s inflation figures would weigh heavily on his decision, noting it would “not take much acceleration” to push him toward a hike.

Key Stock Movers

Dell Technologies surged 11.3% to $563.61 after RBC Capital initiated coverage with an Outperform rating and a $640 price target. Hewlett Packard Enterprise gained 10.7%, and HP Inc. rose 9.5%.

ACV Auctions skyrocketed 44.3% after Copart agreed to acquire the online vehicle auction company for $10.50 per share in cash, valuing the deal at approximately $1.9 billion.

Frequency Electronics jumped 30.7% after reporting first-quarter earnings per share of $0.41, far exceeding analyst estimates of $0.15.

Oracle initially rose on better-than-expected cloud revenue driven by AI demand but closed slightly lower as investors digested the company’s massive capital expenditure plans.

On the downside, memory chip stocks slumped. Seagate Technology fell 3.89%, SanDisk dropped 3.79%, and Western Digital declined 2.01%.

What to Watch Next Week

All eyes will be on the Federal Reserve’s policy decision on Wednesday, September 16. With inflation still above the central bank’s 2% target and core prices running hot, a quarter-point rate hike appears increasingly likely. Investors will also monitor oil price movements amid ongoing geopolitical tensions and any updates on Middle East negotiation