US stocks rallied as retreating oil prices and an earnings beat from Oracle Corp. boosted sentiment in the face of a report that showed accelerating core consumer prices.

The S&P 500 rose 0.8% and the Nasdaq 100 gained 1.1%, led by technology shares. Oracle surged after reporting cloud revenue that topped estimates. Energy shares lagged as West Texas Intermediate crude fell below $80 a barrel.

The Labor Department reported that the core consumer price index, which excludes food and energy, increased 0.4% in August from the prior month. The annual rate remained above the Federal Reserve's 2% target, reinforcing expectations that policymakers will keep interest rates elevated.

Treasury yields initially climbed after the CPI release but pared gains as oil's decline eased inflation concerns. The dollar weakened against a basket of major currencies. Investors are now focused on the Fed's meeting next week, where officials are widely expected to hold rates steady.