Major indexes closed higher as gasoline-driven inflation reinforced expectations that the Federal Reserve will raise rates at its meeting next week.
U.S. stocks ended higher on Friday, Sept. 11, 2026, after the Labor Department's August inflation report came in stronger than expected, reinforcing market bets that the Federal Reserve will raise interest rates at its meeting next week, according to Reuters. The S&P 500 climbed 0.86% to close at 7,656.98 points, while the Nasdaq Composite gained 0.96% to finish at 26,333.04, Reuters reported. The Dow Jones Industrial Average also advanced, though Reuters noted intraday gains had been larger earlier in the session.
Inflation Data Drives Rate Repricing
Reuters reported that consumer prices accelerated in August largely because gasoline costs rebounded after two consecutive monthly declines. The core CPI reading was described as "slightly stronger than expected," enough to bolster expectations of a Fed rate increase next week, according to Reuters' coverage of the report. Market-implied odds of a rate hike at the Fed's upcoming meeting rose to 82% following the release, after briefly touching 90% earlier, up from 68% before the CPI data was published, Reuters said, citing pricing tracked through the CME FedWatch tool.
The reaction underscored a shift already underway in trader sentiment rather than a sudden reversal. Reuters noted that stocks did not sell off on the inflation print; instead, investors treated the data as confirmation of a rate path markets had already begun pricing in ahead of the report.
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Oil Pullback and Notable Stock Movers
Reuters reported that a pullback in oil prices on Friday offered relief to equity markets, helping stocks close out a difficult week on a positive note despite the firmer inflation figures. Among individual movers, Dell was cited as one of the notable stocks contributing to the broader rally, with reports indicating shares reached a record high, though the exact catalyst for the move was not detailed in available Reuters reporting.
The Economic Times, syndicating Reuters-based market coverage on its U.S. stocks page, similarly reported gains across major benchmarks, listing the Dow up 1.23%, the S&P 500 up 1.05% and the Nasdaq up 1.08% in its own tally for the session. Separate real-time figures on the same page showed the Dow at $52,603.50, up 1.00%, and the S&P 500 at $7,660.80, up 0.82%. No Fed officials issued public comments on the data as of Friday's close, according to available reporting.
