Stocks snapped a four-session losing streak on Friday, yet failed to recover weekly losses as investors weighed persistent inflation and rising Treasury yields ahead of the Fed's policy meeting.
Hewlett Packard Enterprise logged a double-digit jump, leading the S&P 500 Communication Services sector.
Dell Technologies logged a double-digit jump, contributing to the tech sector rally.
WTI crude declined 1.8% to $100.60, pulling back from elevated levels amid geopolitical tensions.
Brent crude fell 2.5% to just below $105, retreating from highs driven by Iran conflict fears.
The Dow finished the week down 1.6%, marking its fourth weekly loss in five weeks.
GameStop stock rose 3.5% after CEO Ryan Cohen disclosed a 1 million share purchase, signaling insider confidence.
The S&P 500 ended the week 0.8% lower, snapping a two-week winning streak.
The Nasdaq Composite fell 0.7% for the week, breaking its two-week winning streak.
The U.S. dollar index ticked higher to 99.11, supported by rising rate hike expectations.
Kroger advanced nearly 3% after reporting results, indicating strong earnings.
T-Mobile US shares rose more than 3.5%, leading the Communication Services sector.
UnitedHealth Group shares fell nearly 3%, dragging the Health Care sector into negative territory.
Intel added almost 2.5% after dropping 5.5% the previous day, showing a partial recovery.
Nvidia was the only Magnificent Seven stock to finish lower on Friday, underperforming peers.
Oracle shares declined nearly 2% in post-earnings trading, indicating a negative market reaction.
Gold futures slipped 0.4% to $4,390 an ounce, pressured by a stronger dollar and higher yields.
Adobe stock was up nearly 1.5% in post-earnings moves, suggesting a positive reception.
AppLovin shares were up more than 3%, contributing to sector strength.
Alphabet shares were up at least 2%, helping the Communication Services sector lead.
Bitcoin was trading around $77,400, up slightly over the past 24 hours.
Major U.S. stock indexes rebounded on Friday, with the Dow, Nasdaq, and S&P 500 each gaining nearly 1% as investors digested August CPI data. Despite the late-week surge, all three benchmarks finished the week in the red, marking the Dow's fourth weekly loss in five weeks as markets brace for a potential Federal Reserve rate hike next week.
Recent CPI data shows inflation remains stubbornly above the Fed's 2% target, and rising oil prices have increased concerns that inflationary pressures could persist, prompting traders to price in an 87% chance of a rate increase.
Despite a strong rally on Friday, the Dow Jones, S&P 500, and Nasdaq Composite finished the week down 1.6%, 0.8%, and 0.7% respectively, snapping recent winning streaks.