Nasdaq, S&P 500 and Dow Rebound as Fed Hike Odds Climb
Wall Street finished Friday higher, with the Nasdaq, S&P 500 and Dow all advancing as oil eased, even as inflation data pushed rate-hike expectations sharply higher.
U.S. equities ended Friday with a broad rebound despite a tougher rate backdrop. The S&P 500 gained 0.86% to 7,656.98, the Nasdaq Composite rose 0.96% to 26,333.04 and the Dow Jones Industrial Average advanced 0.98% to 52,573.29. Nine of the S&P 500's 11 sectors finished higher, showing the move was broader than a single megacap-led bounce.
Oil relief helped, but the rate problem remains
Crude prices pulled back from the week's highs, easing some immediate inflation anxiety and helping risk sentiment. At the same time, hotter U.S. inflation reinforced expectations for a Federal Reserve hike. Equities are therefore balancing relief on energy against a less supportive monetary-policy outlook.
AI infrastructure kept supporting growth stocks
Dell and Hewlett Packard Enterprise each jumped 12%, while HP gained 8.4%, as investors reacted to Oracle's stronger cloud and AI-infrastructure demand. The read-through shows that earnings momentum can still offset macro pressure when company-specific demand is strong enough.
What to watch next
The Fed meeting is the dominant catalyst. For Nasdaq and US Tech 100 traders, the most useful combination to monitor is the 10-year Treasury yield, oil prices and market breadth. A durable advance would look stronger if participation remains broad while yields stabilize rather than push decisively through recent highs.
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