Wall Street hits new records after strong inflation data

The Dow Jones rose 1.01 percent to 47,207.12 points, the S&P 500 rose 0.79 percent to 6,791.69 points, and the Nasdaq Composite rose 1.15 percent to 23,204.87 points.

On a weekly basis, the Dow Jones Industrial Average gained 2.20%, its highest gain since June. The S&P 500 rose 1.92%, and the Nasdaq Composite rose 2.31%. This was the best week since August for both indices.

Six of the 11 main sectors of the S&P 500 index ended the session in positive territory. Information technology rose the most (+1.58%), while energy declined the most (-1.01%).

US consumer inflation was 0.3% month-on-month and 3.0% year-on-year in September. Analysts expected a 0.4% month-on-month increase and a 3.1% year-on-year increase.

Investors believe the better-than-expected readings increase the chances of another interest rate cut this year. The decision will be announced on Wednesday, October 29th. At the previous meeting in September, interest rates were cut by 25 basis points. They are currently in a range of 4-4.25%.

To date, 143 companies in the S&P 500 have released their earnings. According to LSEG data, 87% of them beat market expectations. Analysts currently forecast that earnings for companies in this index increased by an average of 10.4% year-over-year in the third quarter.

Next week, five companies from the so-called Magnificent Seven – Alphabet, Amazon, Apple, Meta, and Microsoft – will release their reports for the period from July to September 2025.

November WTI crude oil futures fell 0.58% to $61.43 a barrel, while December Brent crude fell 0.20% to $65.86 a barrel. The yield on 10-year U.S. Treasury notes remained at 3.99%, while spot gold fell 0.5% to $4,103.91 an ounce.