Wall Street Celebrates Record High Closes Amid Cooler Inflation and Earnings Surprises

Wall Street reached record highs on Friday as all three major U.S. stock indexes were lifted by better-than-expected inflation data and strong corporate earnings. The positive developments set a favorable backdrop for upcoming earnings reports and an anticipated rate cut by the Federal Reserve.

The S&P 500 and the Nasdaq saw their most significant weekly percentage gains since August, while the Dow posted its largest Friday-to-Friday increase since June. The Labor Department's Consumer Price Index, although elevated in September, was cooler than analysts predicted, alleviating fears of tariff-induced inflation and solidifying expectations for a 25-basis-point rate cut next week.

Ryan Detrick, chief market strategist at Carson Group, remarked on the optimism surrounding the inflation data, which paves the way for rate cuts not only next week but likely in December as well. The third-quarter earnings season is in full swing, with notable results from major companies such as Meta, Microsoft, and Amazon expected soon.