Traders now see an 86.7% chance the Federal Reserve raises rates a quarter point at its Sept. 15-16 meeting, up from 72.4% a day earlier and 59.4% a week ago, after August consumer prices rose 0.4% for the month and 3.4% over the year, with core inflation at 0.3%. Stocks climbed anyway, with the Nasdaq Composite up 1.3%, the S&P 500 up 1.1% and the Dow Jones Industrial Average up 1%, as 27 of the Dow's 30 components traded higher. Falling oil prices outweighed the inflation report, with Brent Crude sliding 2.7% to $104.68, though it remains on pace for a weekly gain of roughly 8%. Caterpillar rose 2.1% and added 99 Dow points on its own, while Apple gained 2.5% and Alphabet 2.7%, together accounting for about half the Nasdaq's move. Separately, the University of Michigan's consumer sentiment index fell 7.5% in September to 47.8, its second-lowest reading since the survey began in 1952, and Principal Asset Management strategist Seema Shah said one hike will not be enough after years of above-target inflation.
Apple Inc.
Applovin Corp
Alphabet Inc Class C
NVIDIA Corporation
Caterpillar Inc
Principal Financial Group Inc