Wall St bounces as oil cools, inflation risks keeps Fed in focus

On Friday, the main U.S. stock indexes showed an upward trend, rebounding from a rough week as falling oil prices provided relief, according to Reuters. Though data revealed that consumer price inflation surged in August, the gains in equities helped ease some pressure. Dell saw a significant increase of over 11% to reach a record high, while Hewlett Packard Enterprise rose nearly 10% and HP gained about 7%, following strong results from Oracle.

The market's rebound appears to be a return to normalcy, as fluctuating rate expectations, the ongoing Middle East conflict, and elevated Treasury yields had previously weighed on stocks. Andre Bakhos, managing member at Ingenium Analytics, noted that the market may have been in a temporary oversold condition, and the recent move indicates some of that unwinding.

Consumer price index increased by 0.4% last month after a slight rise of 0.1% in July, with 12-month consumer inflation advancing by 3.4%, in line with July's gains. Despite the positive market movement, the report of Thursday's declines could have been overdone, said Kim Forrest, chief investment officer at Bokeh Capital Partners.

Traders now see an 87% chance of a hike at the Federal Reserve's next meeting, up from nearly 70% before the CPI data was released, according to the CME FedWatch tool. Said Haidar, founder of Haidar Capital Management, believes that the Federal Reserve needs to respond to these developments in the near term or risk repeating the high inflation of the 1970s.