By Caitlin McCabe
Investors welcomed softer-than-expected inflation data Friday, sending the three major U.S. stock indexes to record highs.
The Dow industrials rose 472 points after the consumer-price index for September rose 3% in the 12 months through September, a touch below consensus forecasts. The blue chip index's 1% gain put it above 47000 at the close for the first time. The S&P 500 and Nasdaq composite also rose to records.
Investors and policymakers have been deprived of macroeconomic data as the government shutdown drags into a fourth week, and the White House said there likely wouldn't be an October CPI report.
Friday's data, which was delayed more than a week due to the shutdown, reinforced the conviction that the Federal Reserve is likely to cut rates by a standard quarter-point at its two remaining meetings this year.
Stocks have also been helped by optimism over news that President Trump will meet with Chinese leader Xi Jinping next week. Strong earnings this week have also supported the market. Shares in Ford rallied Friday following results.
In recent trading:
The Canadian dollar slipped against the greenback, after President Trump said he was terminating bilateral trade talks. Ontario Premier Doug Ford said late Friday that he will suspend the anti-tariff ad campaign that upended the talks. Canada's prime minister said the country would be ready to resume talks when the U.S. is ready.
Bond yields declined after the CPI report, but climbed back and ended the day close to flat.
Consumers' mood dropped in October amid frustration with high prices.
Chinese chip stocks rallied on Beijing's new economic blueprint.
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(END) Dow Jones Newswires
October 24, 2025 16:11 ET (20:11 GMT)
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