US: S&P 500 ends higher as strong inflation data cements rate-hike bets

Published Sat, Sep 12, 2026 · 09:38 AM

[BENGALURU] Wall Street ended higher on Friday (Sep 11) as oil prices retreated and strong consumer price data reinforced expectations the US Federal Reserve will raise interest rates next week to fight inflation.

Artificial intelligence server maker Dell soared 12 per cent to a record high. Hewlett Packard Enterprise jumped 12 per cent and HP gained 8.4 per cent after Oracle’s quarterly results topped estimates. Oracle dipped 1.8 per cent.

US consumer prices accelerated last month as the cost of petrol rebounded after two straight monthly declines, adding pressure on the Fed to tighten monetary policy to fight inflation.

Interest rate futures now reflect a nearly 90 per cent probability that the central bank will raise rates at its policy meeting on Wednesday, according to the CME FedWatch tool. That is up from a 72 per cent likelihood on Thursday.

The S&P 500 climbed 0.86 per cent to end the session at 7,656.98 points.

The Nasdaq gained 1 per cent to 26,333.04 points, while the Dow Jones Industrial Average rose 1 per cent to 52,573.29 points.

Nine of the 11 S&P 500 sector indices rose, led by communication services, up 1.35 per cent, followed by a 1.13 per cent gain in consumer discretionary.

Volume on US exchanges was relatively light, with 14 billion shares traded, compared with an average of 14.9 billion shares over the previous 20 sessions.

The CBOE Volatility Index, Wall Street’s fear gauge, fell 2 points to 15.88.

Friday’s rally follows recent nervousness on Wall Street related to inflation and rising long-term Treasury yields, as well as concerns about massive spending to build AI data centres. The S&P 500 is down about 2 per cent from its record-high close on Aug 13, and it remains up 12 per cent in 2026.

For the week, the S&P 500 dipped 0.8 per cent and the Nasdaq lost 0.7 per cent. REUTERS