Markets rally as inflation data hints at further Fed rate cuts

Stocks rose Friday, ending a three‑day losing streak and trimming losses for the week after an inflation report suggested the Federal Reserve may continue cutting interest rates.

The S&P 500 rose 38.98 points, or 0.6%, to 6,643.70. The Dow Jones Industrial Average gained 299.97 points, or 0.7%, to 46,247.29. The Nasdaq composite climbed 99.37 points, or 0.4%, to 22,484.07. The Russell 2000 index rose 23.28 points, or 1%, to 2,434.32.

For the week, the S&P 500 is down 20.66 points, or 0.3%. The Dow is down 67.98 points, or 0.1%. The Nasdaq is down 147.41 points, or 0.7%. The Russell 2000 is down 14.45 points, or 0.6%.

For the year, the S&P 500 is up 762.07 points, or 13%. The Dow is up 3,703.07 points, or 8.7%. The Nasdaq is up 3,173.28 points, or 16.4%. The Russell 2000 is up 204.16 points, or 9.2%.

Trump’s latest tariffs moved some individual stocks but did not derail the broad market’s gains, as investors weighed the inflation data and the prospect of ongoing rate cuts that could support elevated equity prices.

The day’s moves come as traders assess whether inflation trends will allow the Fed to maintain a gradual path of rate reductions, a scenario that has supported big rallies earlier in the year. While tariffs have added volatility in selective corners of the market, the overall market held firm Friday, with gains concentrated in large-cap equities as lenders, tech, and consumer-oriented groups contributed to broad-based strength.