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

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 centers. The S&P 500 is down about 2% from its record-high close on August 13, and it remains up 12% in 2026.

For the week, the S&P 500 dipped 0.8% and the Nasdaq lost 0.7%.

The S&P 500's recent decline, coupled with a strong earnings outlook, has the benchmark trading at 19 times expected earnings. That is its cheapest since April 2025, when U.S. President Donald Trump's "Liberation Day" tariff announcements threw global markets into a tailspin.

Oil prices fell but remained up around 9% for the week as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions. Brent crude futures LCOc1 slipped almost 3% but were still above $104 a barrel.