US stocks rally as CPI rises 0.4% boosting Fed odds
US markets had a big day Friday, thanks to fresh inflation numbers.
The consumer price index went up 0.4% in August (mostly because gasoline prices climbed), which has everyone betting on a Federal Reserve rate hike next week.
Odds of a hike jumped from 72% to nearly 90%, according to CME FedWatch.
Dell jumps 11% to all-time high
Tech and hardware stocks were the stars: Dell shot up 11% to an all-time high, Hewlett Packard Enterprise gained 10%, and HP rose 6.5%.
The PHLX chip index also popped by 2.39%, boosted by AMD's solid performance.
Communication services and IT sectors led gains on the S&P 500, with Thomas Martin, senior portfolio manager at GLOBALT Investments in Atlanta, saying the Fed will do the right thing and raise rates, and that is good at the margin for keeping inflation in check.