Market Surge: U.S. Stocks Reach Record Highs Amid Inflation Data

U.S. stock indexes hit record highs as inflation rose less than expected, prompting hopes for Federal Reserve rate cuts. Oil prices climbed further due to U.S. sanctions on Russian oil companies. The euro zone saw faster business activity in October, while U.S. Treasury yields showed mixed performance.

Major U.S. stock indices soared to new heights Friday, driven by inflation data that suggested a rise more modest than predicted, bolstering hopes for interest rate cuts by the Federal Reserve in the upcoming policy meeting. Meanwhile, oil prices continued their upward trajectory following sanctions on Russian oil firms.

The U.S. Consumer Price Index registered a 0.3% climb last month, slightly below the anticipated 0.4% increase, adding fuel to economic optimism. Callie Cox, chief market strategist at Ritholtz Wealth Management, highlighted this as an indicator of stable price growth unlike previous crises, fostering expectations of continued rate reductions.

On Wall Street, sentiments were buoyed further by impressive earnings from top firms like Intel and anticipation for reports from Apple and Microsoft. Despite trade tensions with Canada, the U.S. dollar remained relatively stable. In Europe, business activity grew unexpectedly in October, amid mixed signals from U.S. Treasury yields and rising crude prices.

(With inputs from agencies.)