Wall Street hits record highs after inflation data

US stock indexes rose at the start of trading on Friday after the release of US inflation data strengthened expectations of a Federal Reserve interest rate cut.

Government data released earlier showed that the annual consumer price index (CPI) rose 3% in September, below forecasts of 3.1%.

Following the report, the CME FedWatch tool showed that the probability of a December rate cut jumped to 98.5%, compared with 91% before the data release, while the odds of a cut at next week’s meeting remained between 98% and 99%.

The rally came as the US government shutdown entered its 24th day, with investors also monitoring corporate earnings reports.

As of 15:34 GMT, the Dow Jones Industrial Average rose 0.7% (338 points) to 47,071, the broader S&P 500 gained 0.7% (50 points) to 6,790, and the Nasdaq Composite climbed 1.1% (251 points) to 23,195.