Wall Street buoyed after weak inflation data

U.S. equities moved higher on Friday after weaker inflation figures strengthened expectations that the Federal Reserve will cut interest rates at its upcoming meeting.

Fresh data showed that the core Personal Consumption Expenditures (PCE) price index — which excludes food and energy — rose 2.8% year over year in September, slightly below expectations of 2.9%. On a monthly basis, the index increased 0.2%, in line with forecasts.

The headline PCE index, which includes more volatile components, climbed to 2.8% year over year from 2.7% in August, while the monthly pace held steady at 0.3%.

According to CME Group’s FedWatch tool, markets are pricing in an almost 89% probability of a 25-basis-point cut at the Fed’s next policy meeting.

In market trading as of 16:15 GMT, the Dow Jones Industrial Average rose 0.4% (183 points) to 48,034. The S&P 500 gained 0.5% (31 points) to 6,888, while the Nasdaq Composite advanced 0.6% (137 points) to 23,642.