Wall Street Rises Amid Hopes for Fed Rate Cuts

Wall Street indexes showed marginal growth as investors reacted to unexpectedly low U.S. inflation data, enhancing hopes for Federal Reserve interest rate cuts. While the U.S. dollar remained stable, bitcoin surged, and oil and gold prices ticked upwards. Global stock performance varied amid AI concerns.

Wall Street indexes ended the week with small gains as investors processed January's cooler-than-expected U.S. inflation numbers, fueling optimism over potential interest rate cuts from the Federal Reserve. The Consumer Price Index rose 2.4% annually, slightly below the 2.5% forecast.

The data follows a robust U.S. employment report and keeps the Fed's benchmark overnight interest rate between 3.50%-3.75%. Some speculate that market expectations on future rate cuts might shift. Chief Investment Officer Tim Holland sees positive signs as falling gasoline and car prices could boost consumer sentiment heading into the holiday weekend.

Despite the Dow and S&P 500 showing slight improvements, the Nasdaq experienced a decline, reflecting ongoing concerns about artificial intelligence disruption in the tech sector. International markets also responded variably, with European shares and global stock gauges showing mixed results.

(With inputs from agencies.)