US stocks jump after oil prices ease and an inflation update comes in
near expectations
[September 12, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks rebounded Friday and regained much of their
losses for the week after oil prices eased off their recent spurt. An
update on inflation across the United States that came in close to
economists’ expectations, even if prices are still rising too quickly
for everyone’s liking, also helped calm the market.
The S&P 500 climbed 0.9% and snapped a four-day losing streak, its
longest since June. The Dow Jones Industrial Average jumped 509 points,
or 1%, and the Nasdaq composite rose 1%.
They got help from a pullback in oil prices, which had jumped to their
highest levels since May because of the ongoing war with Iran. The price
for a barrel of Brent crude, the international standard, fell 2.8% to
settle at $104.61 after getting near $110 overnight.
That took a bit of pressure off inflation, which remains stubbornly
high. A report on Friday showed that U.S. consumers had to pay prices
for gasoline, food and other costs of living that were 3.4% higher last
month than a year earlier.
While still high, that was close to what economists expected and what
Wall Street was prepared for. The data also strengthened expectations
among traders that the Federal Reserve will feel compelled to hike its
main interest rate at its meeting next week.
Such moves are the typical way the Fed tries to rein in high inflation,
and they work by filtering through the bond market, making it more
expensive for everyone to borrow money, slowing the economy and
hopefully removing fuel for further inflation.
The rising expectations for an upcoming hike to rates drove up the yield
of the two-year Treasury, which moves with guesses for upcoming Fed
action, to 4.62% from 4.56% late Thursday.
Longer-term Treasury yields held steadier, though. That could be a
signal that investors in the bond market see upcoming hikes by the Fed
as helping to keep control of inflation over the longer term. The yield
on the 10-year Treasury rose more modestly to 4.97% from 4.95% late
Thursday, while the 30-year yield eased to 5.36% from 5.37%.
Economists say hikes could quiet questions about the Fed’s commitment to
keeping inflation under control. Worries had risen earlier in the summer
about its credibility and whether it would do what’s needed to bring
inflation down, even if it causes pain for the economy in the near term.
Federal Reserve Chairman Kevin Warsh has been adamant about not giving
hints about where the Fed may take interest rates, though he did calm
some concerns among investors at a speech late last month. President
Donald Trump, meanwhile, has been pushing for interest rates to go lower
rather than higher.
[to top of second column] |
 “Symbolism can trump substance, even
when it comes to monetary policy,” according to Brian Jacobsen,
chief economic strategist at Annex Wealth Management.
It’s all coming at a moment when confidence among
Americans continues to sour. A preliminary report from the
University of Michigan on Friday said U.S. consumer sentiment is
falling, with declines for both Democrats and Republicans.
Their expectations for inflation coming in the year ahead jumped to
4.6% from 4% last month. That’s the highest reading since June, and
it’s concerning for the Fed and for economists because it can
trigger a vicious cycle of behavior that worsens inflation.
On Wall Street, Kroger rose 2.7% after the grocer reported a
stronger profit for the latest quarter than analysts expected. It
also held firm on its forecast for profit over the fiscal year, even
though it trimmed its forecast for an important underlying measure
of revenue growth.
ACV Auctions, whose digital marketplace connects wholesale buyers
and sellers of vehicles, soared 44.2% after Copart said it would pay
$10.50 in cash for each of the company’s shares. Copart, whose
online vehicle auctions sold more than 4 million units in the last
year, fell 2.6%.
An early jump for Oracle faded as trading progressed after the tech
giant reported stronger profit and revenue for the latest quarter
than analysts expected. After initially leaping 8.5%, its stock
swiveled between gains and losses and finished with a loss of 1.7%.
Stocks closely tied to the artificial-intelligence industry broadly
became shaky this summer on worries that the AI frenzy may have sent
prices too high.
All told, the S&P 500 rose 65.28 points to 7,656.98. The Dow Jones
Industrial Average added 509.19 to 52,573.29, and the Nasdaq
composite climbed 251.31 to 26,333.04.
In stock markets abroad, indexes rose in Europe as oil prices eased.
London’s FTSE 100 added 0.4% after a report said the U.K. economy
was stronger in July than economists expected.
Stock markets were weaker in Asia, where Japan’s Nikkei 225 lost
1.9% and South Korea’s Kospi fell 1.8%.
___
AP Business Writers Chan Ho-him and Michelle Chapman contributed to
this report.
All contents © copyright 2026 Associated Press. All rights reserved
 |
