U.S. stocks rebound as retreating oil prices offer Wall Street respite


NEW YORK, Sept. 11 (Xinhua) -- U.S. stocks ended higher on Friday, snapping a four-day losing streak as global crude oil prices pulled back from recent highs, offering temporary relief to equity markets ahead of the Federal Reserve's policy meeting next week.

The Dow Jones Industrial Average rose 509.19 points, or 0.98 percent, to 52,573.29. The S&P 500 added 65.28 points, or 0.86 percent, to 7,656.98. The Nasdaq Composite Index increased by 251.31 points, or 0.96 percent, to 26,333.04.

Nine of the 11 primary S&P 500 sectors ended in the green, with communication services and consumer discretionary leading the gainers by going up 1.35 percent and 1.13 percent, respectively. Meanwhile, utilities and health lost 0.34 percent and 0.14 percent, respectively.

Global energy markets retreated Friday following a multi-day rally that had sent benchmarks to fresh highs. West Texas Intermediate for October delivery decreased by 2.43 U.S. dollars, or 2.37 percent, to settle at 100.05 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 3.02 dollars, or 2.81 percent, to settle at 104.61 dollars a barrel on the London ICE Futures Exchange.

The consumer price index (CPI) increased by a seasonally adjusted 0.4 percent for the month, putting the 12-month inflation rate at 3.4 percent, the U.S. Bureau of Labor Statistics reported Friday.

The core CPI, which strips out volatile food and energy components, came in at 2.4 percent. Both figures confirmed the prevailing narrative among investors that inflation in the United States remains too high for the central bank to keep rates at their current levels.

According to the CME Group's FedWatch tool, financial markets are pricing in an 87 percent probability that the Federal Reserve will raise its benchmark interest rate by 25 basis points at the conclusion of its policy meeting next Wednesday.

"There's no guarantee that the Fed will hike next week, but it's hard to see how the central bank can justify leaving rates on hold," wrote Chris Zaccarelli, chief investment officer for Northlight Asset Management. "What is more interesting is whether the stock market shakes off the threat of higher interest rates and continues to rally in the face of rising oil prices, higher short-term rates and even higher long-term rates."

In corporate earnings developments, Oracle slipped 1.74 percent, reversing sharp gains logged earlier in the session. Software maker Adobe gained 1.37 percent, while supermarket operator Kroger advanced 2.7 percent after delivering better-than-expected quarterly results Friday morning.

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