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(Updates with afternoon trading, adds analyst comment) * CPI up 0.4% in August, after 0.1% rise in July * Dell hits record high, hardware stocks climb * S&P 500 0.99%, Nasdaq 1.08%, Dow 1.08% By Noel Randewich and Tharuniyaa Lakshmi Sept 11 (Reuters) - Wall Street rallied on Friday as oil prices retreated and strong consumer price data reinforced expectations the Federal Reserve will raise interest rates next week to fight inflation. Dell soared 11% to a record high. Hewlett Packard Enterprise jumped 10% and HP gained 6.5% after Oracle's quarterly results topped estimates. Oracle dipped 0.5%. U.S. consumer prices accelerated last month as the cost of gasoline rebounded after two straight monthly declines, adding pressure on the Fed to tighten monetary policy to fight inflation. Interest rate futures now reflect a nearly 90% probability that the central bank will raise rates at its policy meeting on Wednesday, according to the CME FedWatch tool. That is up from a 72% likelihood on Thursday. "That's pretty much as close to a slam dunk as you're going to get," said Thomas Martin, senior portfolio manager at GLOBALT Investments in Atlanta. "The Fed will do the right thing and raise rates, and that is good at the margin for keeping inflation in check." The S&P 500 was up 0.99% at 7,666.77 points. The Nasdaq gained 1.08% to 26,363.39 points, while the Dow Jones Industrial Average was up 1.08% at 52,625.63 points. The PHLX chip index jumped 2.39%, helped by a 2.6% increase in Advanced Micro Devices. Ten of the 11 S&P 500 sector indexes rose, led by communication services, up 1.69%, followed by a 1.35% gain in information technology. The CBOE Volatility Index, Wall Street's fear gauge, fell 2.2 points to 15.63. 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. The S&P 500's recent decline, coupled with a strong earnings outlook, has the benchmark trading at 19 times expected earnings, 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 over 9% for the week as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions. Brent crude futures slipped about 3% but were still above $104 a barrel. Shares of ACV Auctions soared 44% after online vehicle auctioneer Copart agreed to buy it in a nearly $1.9 billion deal. Advancing issues outnumbered falling ones within the S&P 500 by a 2.6-to-one ratio. The S&P 500 posted seven new highs and seven new lows; the Nasdaq recorded 41 new highs and 146 new lows. (Reporting by Noel Randewich in San Francisco; Additional reporting by Niket Nishant, Tharuniyaa Lakshmi and Utkarsh Hathi in Bengaluru; Editing by Joyjeet Das and Matthew Lewis) Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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