Dow surges 500 points as traders shake off firm inflation data and oil prices retreat: Live updates

BREAKING: Dow surges 500 points as traders shake off firm inflation data and oil prices retreat. S&P 500 climbs 0.9% and Nasdaq gains 1%, snapping a four-day losing streak.

The Dow just jumped 500 points on a day the numbers said it shouldn't.

Four straight losing sessions, the longest Dow skid since April, and traders decided today was the bounce. You can see the mood on the floor here, the S&P up 0.9%, the Nasdaq up 1%. What changed was oil. Crude gave back 3%, WTI back under a hundred bucks, though both contracts are still up about 8% on the week.

And here's what makes the rally a little brave. Inflation came in at 3.4% yesterday, core hotter than forecast, and the market's pricing an 85% chance the Fed hikes next week. One strategist at Principal put it plainly, the debate isn't whether they hike anymore, it's how many hikes this cycle needs.

So enjoy the green today. The 2-year yield just touched its highest level since 2024, and that's the tell I'd watch, not the Dow.

This is Sara White, reporting for HIT.