Stock market today: Dow, S&P 500, Nasdaq rise as CPI remains sticky, Fed rate-hike bets jump

Primary Journalistic Dispatch & Direct Reporting

The Dow Industrial Average ( ^DJI) , S&P 500 ( ^GSPC ), and Nasdaq Composite ( ^IXIC ) each climbed roughly 1%. The move comes after those indexes have faced a four-day losing streak.

Investors turned their attention to the Consumer Price Index , the last piece of inflation data before Federal Reserve policymakers convene next week. Overall prices rose 0.4% on a monthly basis and 3.4% on an annual basis, which were in line with economists' expectations and slightly hotter than July's reading.

Read more: What is inflation, and how does it affect you?

In-Depth Developments & Factual Context

While inflation has trended lower since May, it remains well above the Fed's 2% goal. The recent spike in oil prices has only fueled inflation concerns after Brent crude prices ( BZ=F ) topped $108 per barrel before easing back on Friday and diesel reached its highest price ever , at $6 per gallon.

The increase in oil prices, as well as Friday's CPI report, prompted traders to ramp up their bets that the Fed will raise interest rates this month. Markets are now pricing in a roughly 87% chance the Fed raises interest rates by 25 basis points at the FOMC meeting next week, according to the CME's Fedwatch tool. That's up from 72% a day ago and 50% a week ago.

Oracle ( ORCL ) shares trimmed gains after popping over 2% on Friday after the database software company reported strong cloud computing growth in the latest quarter.

Industry Impact & Strategic Analysis

Some relief in the refrigerated aisle may be on its way.

While increases in beef prices continue to outpace overall inflation, they're starting to cool. In August, the price of beef rose 5.9%, according to the latest CPI data. But earlier this year, beef prices had risen by as much as 14.8% to record highs.

"We saw a huge run-up last year," Wells Fargo Agri-Food Institute chief agricultural economist Michael Swanson told Yahoo Finance . "As we walk into the September, October year-over-year comps, they're going to be pretty flat. And so we're kind of seeing the end of the beef drama as we go forward, at least in the BLS comps on a year of your basis."

Forward Outlook & Market Perspective

Swanson also mentioned that shoppers could see slower price increases in poultry, eggs, pork, and dairy products as well.

Overall food inflation rose 2.7% on an annual basis in August.

SpaceX ( SPCX ) just inked another big AI compute deal, one that will take the space and rocket company closer to its $100 billion annual recurring revenue (ARR) target this year, a big metric for investors.

At the Goldman Sachs Communacopia & Technology Conference in San Francisco, CFO Bret Johnsen said a new AI compute deal has been reached in which SpaceX leases out compute bandwidth for third-party clients.

"We're on track, or we believe we're on track to hit $100 billion ARR," Johnsen said about SpaceX's overall ARR target, as AI compute deals helped fuel the growth, before revealing the news. "What I would tell you, an update to that is that just earlier this month we closed another hosting deal, and that translates into about $1.11 billion a month starting December 1st of this year, which is another roughly $13 billion of ARR."

Consumers felt more dour about the US economy in September as rising gas prices create a pain point, according to a new survey from the University of Michigan.

Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via Yahoo Finance.