U.S. stocks broke a four-day losing streak on September 11, 2026, as August's consumer price index came in close to expectations and crude oil pulled back from its recent spike. The rebound came just days before the Federal Reserve's September 15-16 policy meeting, where traders have sharply raised the odds of a rate increase. A separate report showing a sharp drop in consumer sentiment added a note of caution to an otherwise risk-on session.

Indexes Snap a Four-Day Slide

The S&P 500 rose 65.28 points, or 0.9%, to close at 7,656.98, while the Dow Jones Industrial Average gained 509.19 points, or 1%, to finish at 52,573.29. The Nasdaq Composite added 251.31 points, also up 1%, to end the session at 26,333.04. The advance snapped a four-day losing streak for all three indexes, a stretch driven by surging oil prices tied to the U.S.-Iran conflict in the Strait of Hormuz and mounting bets on a Federal Reserve rate hike. The S&P 500 recovered most of Thursday's 0.58% drop, when it had closed at 7,591.70, before Friday's data eased some of the week's pressure. Buying was broad-based, with gains spread across large-cap technology and value names alike.

August CPI Matches Forecasts

The Bureau of Labor Statistics reported that the consumer price index rose 0.4% in August, keeping the annual rate at 3.4%, in line with economists' estimates. Core CPI, which excludes food and energy, rose 0.3% for the month, slightly above the 0.2% forecast, while the annual core rate eased to 2.4%, its lowest level since March 2021. Gasoline prices jumped 3.9% during the month and accounted for more than a third of the headline increase, showing how the recent run-up in oil prices fed directly into consumer costs even as underlying inflation trends kept moderating.

Oil Retreats as Rate-Hike Bets Firm Up

Crude oil eased after its recent surge, with Brent crude falling about 3% to settle near $104.61 a barrel and West Texas Intermediate dropping 2.4% to $100.05, both still elevated after the escalation in the Strait of Hormuz. Despite the pullback in energy prices, traders raised the implied odds of a Federal Reserve interest-rate increase at the September 15-16 meeting to roughly 85% to 90%, up from about 70% before Friday's inflation data. The 10-year Treasury yield held near 4.97%, while the 2-year yield touched its highest level in years near 4.65%, reflecting the shift in rate expectations under Fed Chair Kevin Warsh.

Consumer Sentiment Slides to a Near-Record Low

A separate report from the University of Michigan showed preliminary consumer sentiment for September fell to 47.8 from 51.7 in August, the second-lowest reading on record and below every forecast in a Bloomberg survey of economists. Year-ahead inflation expectations climbed to 4.6% from 4.0%, the highest since June, as households pointed to rising fuel costs and ongoing trade tensions. The divergence between resilient equity markets and deteriorating consumer confidence highlights the uncertain backdrop facing policymakers heading into next week's Fed decision, with household spending data likely to draw closer scrutiny in the weeks ahead.

Daily market analysis by BCM Markets.