US equity and Bitcoin prices rise as August CPI inflation hits 3.4% year-on-year
Major US stock indices closed higher on Friday, while Bitcoin rebounded to $79,000 despite new inflation data showing a 3.4% annual increase in the Consumer Price Index.
US equity markets rose on Friday as investors reacted to August Consumer Price Index (CPI) figures released by the Bureau of Labor Statistics. The core CPI index increased 0.3% month-on-month, surpassing the expected 0.2%. On a year-over-year basis, consumer price inflation stood at 3.4%, matching July's figure according to Reuters data.
The S&P 500 Index gained 1% and the Nasdaq Composite Index increased 1.1% after initially dropping during the session. Bitcoin returned to $79,000, up more than 3% from a low of $76,000. Trading volume remained high as analysts noted nervous market sentiment regarding Federal Reserve policy decisions.
Implied probabilities for a Fed rate hike at the September 16 meeting rose to 85%. The 30-year US Treasury yield whipsawed before settling at 5.309%.
