622-point gains in the Dow led a broad Friday rebound, with the S&P 500 and Nasdaq each up 1.1% after four straight losing sessions.
WTI crude fell 3% to $99.28 a barrel and Brent slid 3.1% to $104.32, easing some of the market pressure from this week's Middle East-driven oil spike.
August CPI still kept rate fears alive: headline inflation matched forecasts at 0.4% month over month and 3.4% year over year, while core CPI rose a hotter-than-expected 0.3%.
FedWatch now shows an 85.6% chance of a quarter-point hike next week, with the 2-year Treasury yield touching its highest level since July 2024.
Tech shares helped the recovery as investors rotated back into growth, with Oracle's strong earnings reinforcing confidence in the AI trade.