Wall Street surged to fresh all-time highs Friday as a softer-than-expected inflation reading strengthened market conviction that the Federal Reserve will cut interest rates by 25 basis points at its Oct. 30 policy meeting.

The annual headline inflation came in at 3% in September 2025, slightly up from August’s 2.9% pace but below expectations of 3.1%. When excluding food and energy items, core inflation was cooler-than-expected, falling from 3.1% to 3% year-over-year.

The S&P 500 broke above the 5,800 level, rising 1% on the day and extending its year-to-date gain to 15%. Gains were broad-based across sectors, with every S&P 500 group advancing except energy, while tech led the rally.

The Dow Jones Industrial Average jumped 1.2% to 47,290, setting a new record, while the Nasdaq 100 also climbed 1.2% to 25,370, marking another all-time high.

Small caps led the charge, with the Russell 2000 soaring 1.7% to 2,520, just shy of its record high of 2,560.

Ford Motor Co. (NYSE:F) was ...