(Il Sole 24 Ore Radiocor) - Milano, 11 set - US shares were trading higher at midday after a retreat in oil prices and an inflation report that was broadly in line with expectations provided relief after a turbulent week, even as the data strengthened expectations that the Federal Reserve will raise interest rates next week.

The CPI index showed that prices in August rose 0.4% on the month and 3.4% on the year. Core prices, stripping out food and energy, climbed 0.3% and 2.4%, respectively, While broadly in line with expectations, the numbers remained stubbornly high and well above the Fed's inflation target of 2%. According to the CME Group's FedWatch Tool, the market is currently pricing in an 86% chance of an interest rate hike at the central bank's monetary meeting next week, up from around 70% yesterday.

High energy prices, driven by the US-Iran war, have fed into inflation to fuel rate hike fears.

Brent futures today came off recent highs, easing 3% to around 104 dollars per barrel. But they are still up sharply for the week.

The bond market meanwhile steadied after the 10-year Treasury yield came close to hitting 5% overnight.

On the stocks front, shares in Oracle rose 0.57% after the hyperscaler reported higher profits and revenue while shares in Adobe fell 0.13% after the software company said its move to a 'freemium' business model could slow revenue growth near term.

At 1521 GMT, the Dow Jones was up 503.58 points, or 0.97%, at 52,567.68 points.

The S&P 500 was 76.52 points, or 1.01%, higher at 7,668.22 points.

The Nasdaq was gaining 317.31 points, or 1.22%, at 26,400.68.

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(RADIOCOR) 11-09-26 17:23:06 (0526) 5 NNNN