Wall Street Rises After 3-Day Decline Amid Inflation Data, Fed Rate Cut Speculation

U.S. stocks rebounded Friday, ending a three-day losing streak as inflation data aligned with economists' expectations, providing hope that the Federal Reserve may continue cutting interest rates to support the economy. The S&P 500 rose 0.6%, the Dow Jones Industrial Average climbed about 0.7-0.9%, and the Nasdaq gained around 0.4%, moving closer to all-time highs. Inflation accelerated slightly to 2.7% in August, above the Fed's 2% target but consistent with forecasts, which could justify further rate cuts despite the risk of worsening inflation. President Donald Trump announced new tariffs on imports including pharmaceutical drugs, kitchen cabinets, bathroom vanities, upholstered furniture, and heavy trucks, set to start on October 1, causing some stock market ripples but not broad disruption. The tariffs include a 100% tax on patented pharmaceuticals unless manufacturers build plants in the U.S., affecting companies like Johnson & Johnson, Pfizer, and Eli Lilly. Investors remain focused on Fed policy amid mixed economic signals, corporate earnings approaching, and global uncertainties including energy market impacts from geopolitical events.