U.S. stocks surged to new intraday highs on Friday as cooler-than-expected inflation data boosted investor confidence that the Federal Reserve can continue cutting rates, supporting the economy and higher equity valuations.

The Dow rose 565 points (1.2%), the S&P 500 gained about 1%, and the Nasdaq climbed 1.3%.

September’s consumer price index showed a 0.3% monthly increase, bringing the annual rate to 3%, below economists’ expectations, prompting traders to price in nearly certain rate cuts later this year, CNBC has reported.

Financial stocks led the rally, while markets largely brushed off President Trump’s trade comments, leaving tech and AI shares to help push indexes toward weekly gains of over 2%.