All three major U.S. stock indexes finished Friday's session in positive territory as investors weighed a consumer price index report that showed inflation remains persistent, reinforcing the market's conviction of an imminent interest rate hike next week.

The Dow Jones Industrial Average climbed 509.19 points, or 0.98%, to settle at 52,573.29. The S&P 500 advanced 65.28 points, or 0.86%, closing at 7,656.98, while the Nasdaq Composite gained 251.32 points, or 0.96%, to finish the day at 26,333.04.

Most of the "Magnificent Seven" mega-cap stocks traded higher, with Alphabet, Amazon, and Apple each advancing more than 1%. Meta, Microsoft, and Tesla posted modest gains, while Nvidia edged slightly lower.

Large-cap technology names broadly advanced. Dell Technologies surged over 11%, Super Micro Computer jumped more than 7%, and Qualcomm rose nearly 3%. Intel and SpaceX each added more than 2%.

The optical communications sector saw gains, with Marvell Technology and Coherent both climbing over 4%.

Memory and storage stocks delivered a mixed performance. Seagate Technology dropped over 3%, SanDisk fell more than 3%, and Western Digital declined nearly 3%, whereas SK Hynix gained close to 1% in the session.

The session's advance broke a four-day losing streak for the three main averages. For the Dow, that marked its longest consecutive daily decline since late April.

Oil prices retreated, giving back a portion of the gains accumulated this week amid escalating tensions in the Middle East. West Texas Intermediate crude for October delivery slid $2.43 to settle at $100.05 per barrel, a decline of 2.37%. Brent crude for November delivery dropped $3.02 to close at $104.61 per barrel, down 2.81%. Despite the pullback, WTI still finished the week nearly 10% higher, while Brent gained roughly 9%.

The latest U.S. inflation data revealed that rising energy costs are exerting upward pressure on consumer goods. The August consumer price index rose 0.4% month over month and 3.4% year over year, matching Wall Street estimates. Excluding energy and food, core CPI increased 0.3% month over month, coming in slightly above expectations.

Friday's CPI report spurred traders to increase their bets on a rate increase this month. According to the CME FedWatch tool, markets now price an approximately 87% probability of a 25 basis point hike at next week's Federal Open Market Committee meeting, up from 72% the prior day and 50% a week ago.

Bond yields held broadly steady following the release, but the 2-year Treasury yield broke above 4.6%, reaching its highest level since July 2024, reflecting growing expectations for tighter monetary policy.

"The debate has quickly shifted from whether the Fed will hike, to the more important question of how many hikes this cycle will ultimately require," said Seema Shah, chief global strategist at Principal Asset Management. "We don't think this is a one-and-done situation. This is no longer a fine-tuning exercise for the economy. After five years of inflation running above target, policymakers may conclude that restoring price stability will require more than a single rate increase."