Stocks rebound as investors bet on Fed rate hike this Wednesday

  • Investors increased bets that the Federal Reserve will raise interest rates this Wednesday.
  • Oil prices rose above $100 a barrel during the week.
  • Stocks rebounded and bonds steadied Friday after warmer-than-expected inflation data.

U.S. stocks rebounded and bonds steadied Friday after inflation data came in slightly warmer than expected. The report prompted investors to increase bets that the Federal Reserve will raise interest rates this coming Wednesday, even as higher borrowing costs weigh on markets. The move capped a volatile week marked by oil prices rising above $100 a barrel, U.S. Treasury yields climbing to multiyear highs and early signs of weakness in stocks.

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