The Dow Jones Industrial Average rallied Friday morning as Wall Street reacted to a slightly hotter-than-expected inflation report and a sharp drop in oil prices. The S&P 500 and Nasdaq composite gained even more than the Dow, while crude, Treasury yields, and bitcoin all moved on the same session.
The Dow industrials rose 1% in morning trade Friday, joining a broader rally as investors weighed the inflation print against a pullback in oil. The S&P 500 moved up 1.1%, and the Nasdaq composite climbed 1.2%. Breadth was positive by roughly 2-to-1 on both the Nasdaq exchange and the New York Stock Exchange.
The Labor Department said the consumer price index rose 0.4% in August, with an annual increase of 3.4%, both matching estimates. Core inflation, which excludes food and energy, climbed 0.3% on the month — slightly hotter than the 0.2% estimate — and 2.4% year over year, in line with expectations.
West Texas Intermediate crude futures tumbled 3% to around $99.30 a barrel. The 10-year Treasury yield ticked lower to 4.93%, and bitcoin rose to roughly $79,100 during the same session.
Inside the Dow industrials, Nvidia and Amazon rallied more than 1% each in morning trading, with Nvidia stock looking to snap a three-day losing streak. Chevron declined 0.8% ahead of the market open amid the drop in oil prices.
Source: Investor's Business Daily
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