US Stocks Rally on Cool CPI Data as Investors Eye Fed Rate Cut
Wall Street surged Friday after September's consumer price index report showed milder-than-expected inflation, fueling Optimism ahead of anticipated Federal Reserve easing. The Dow Jones Industrial Average leapt 350 points while the S&P 500 and Nasdaq Composite notched record highs.
Market participants interpreted the 0.3% monthly CPI increase - below the 0.4% forecast - as cementing the case for monetary policy loosening. The blue-chip index gained 0.8% intraday, with the tech-heavy Nasdaq outperforming at +1.2% as risk assets broadly benefited from the dovish signal.
Trading volumes spiked amid pent-up demand following weeks of delayed economic data during the government shutdown. The inflation print's timing proved particularly consequential, arriving just days before the Fed's next policy decision.
