S&P 500 Rises Today but Posts Weekly Decline

The S&P 500 climbed 0.86% to 7,656 points on Friday as crude prices cooled. Meanwhile, the Dow Jones Industrial Average rose 0.98% to 52,573 points, and the Nasdaq Composite added 0.96% to 26,333 points. Most sectors finished higher, led by communications, consumer discretionary, and technology, which all gained more than 1.1%.

Despite Friday's gains, major indices ended lower over the holiday-shortened week following Monday's Labor Day closure. According to CNBC, the S&P 500 dropped 0.8%, the Dow lost 1.6%, and the Nasdaq fell 0.7% across the week. Markets remained focused on West Texas Intermediate crude, which hit a three-month high on Thursday before easing to $100 per barrel on Friday after opening up 3.9% earlier on conflict between the US and Iran. The average US diesel price reached $6 per gallon for the first time, marking a 63% jump compared to last year.

Inflation data added pressure as the US Consumer Price Index held at 3.4% year-over-year in August after two months of declines, lifted by fuel prices tied to US-Iran tensions and the Strait of Hormuz blockade. The reading remains above the Federal Reserve's 2% target. CME FedWatch pointed to an 85% probability of a quarter-point interest rate increase at next week's policy meeting. In reaction, the US two-year Treasury yield rose to 4.628%, reaching its highest level since July 2024.

The labor market also showed strength as the US government reported 162,000 jobs created in August, exceeding expectations, while the unemployment rate held at 4.1%. Additionally, the US imposed tariffs on Canada on Tuesday of up to 50% on imports worth roughly $20 billion. Across other markets, gold fell to $4,391 an ounce, the euro weakened to $1.159 against the dollar, and bitcoin traded up to $77,300.