Wall Street Hits New Highs After Inflation Data, Posts Weekly Gains

05:02 PM EDT, 10/24/2025 (MT Newswires) -- Wall Street's equity benchmarks hit fresh all-time highs on Friday after a soft consumer inflation report reinforced expectations of further monetary policy easing by the Federal Reserve next week.

The Nasdaq Composite climbed 1.2% to 23,204.9. The Dow Jones Industrial Average rose 1% to 47,207.1, while the S&P 500 advanced 0.8% to 6,791.7. Among sectors, technology led the gainers, while energy saw the biggest drop.

All three indexes posted their second consecutive weekly gains, with the Nasdaq gaining 2.5%, followed by the Dow's 2.4% climb. The S&P 500 rose 2% on the week.

In economic news, US consumer prices grew less than expected last month, while core inflation surprisingly ticked down.

"Finally, a new US economic data point to analyze, and it was a good one," Scott Anderson, chief US economist at BMO, said in a report. "CPI inflation clearly and convincingly moderated in September, swinging the door wide open for another quarter point rate cut from the (Fed) next week."

The September inflation report was originally slated for an Oct. 15 release, but was rescheduled due to the ongoing government shutdown. The stoppage is expected to continue at least through the weekend, with the Senate recessed until next week and US President Donald Trump departing later on Friday for a trip to Asia, USA Today reported.

"Taking a cue from the September ADP employment data that showed further net job loss and deterioration, and now a better-than-expected CPI report, the path of least resistance is for the (Federal Open Market Committee) to take another tentative step toward interest rate normalization and cut," Anderson said.

US consumer sentiment dropped for a third consecutive month in October as concerns over high prices persisted, according to a survey by the University of Michigan.

"Consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers' minds," Surveys of Consumers Director Joanne Hsu said.

Separately, US private-sector output grew in October at the fastest pace in three months amid gains in both manufacturing and services, according to S&P Global's (SPGI) flash purchasing managers' index data.

US Treasury yields were marginally lower, with the two-year rate down 1.3 basis points to 3.49% and the 10-year rate losing 0.4 basis point to 4%.

Ontario Premier Doug Ford said Friday that the province will stop airing the anti-tariff advertisement that featured the voice of former US President Ronald Reagan criticizing tariffs.

The move follows Trump's criticism of the ad being run in the US and his decision to terminate all trade negotiations with Canada.

West Texas Intermediate crude oil was down 0.5% at $61.46 a barrel in Friday late-afternoon trade.

In company news, Ford Motor (F) shares jumped 12%, the best performer on the S&P 500, after the automaker delivered third-quarter top- and bottom-line beats late Thursday.

Deckers Outdoor (DECK) shares tumbled 15%, the worst S&P 500 performer. The footwear designer and distributor late Thursday issued a full-year outlook below market estimates.

Gold was down 0.7% at $4,115.60 per troy ounce, while silver lost 0.6% to $48.40 per ounce.

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