Wall Street rallied as lower-than-expected inflation data fueled expectations of Federal Reserve rate cuts. The S&P 500 hit all-time highs, with traders welcoming the slowest pace of underlying inflation in three months. Fed officials are likely to cut rates next week, with more cuts possible in December. Stocks rose almost 1% while Treasury yields fell slightly. The dollar was unstable. Fed Chair Jerome Powell is expected to continue the rate-cutting trend to support the economy. The market is relieved by the benign inflation data and the potential for further rate cuts. The delay in releasing October inflation data due to the government shutdown added uncertainty. The market anticipates multiple rate cuts through next year. Inflation remains stable, allowing the Fed room to ease monetary policy. The report shows that inflation is contained despite tariff impacts in certain sectors. Consumer sentiment dropped to a five-month low, reflecting concerns about high prices and financial impacts. Fed officials will consider ending the reduction of the bank’s securities portfolio amid market pressures. Traders are betting on more rate cuts over the next year, as inflation remains below neutral levels. The market expects the Fed to focus on labor market conditions rather than inflation. Corporate highlights include Invesco’s proxy vote on the QQQ fund and Intel’s challenges despite an upbeat forecast. Ford signals recovery from a supplier fire, while Procter & Gamble reports strong sales. General Motors cuts jobs after raising profit guidance, and Target restructures to reduce complexity. Alaska Air faces tech glitches disrupting travel. Newmont benefits from cost-cutting, while Eli Lilly acquires Adverum Biotechnologies. JPMorgan plans to accept Bitcoin and Ether as loan collateral. Crypto.com seeks a US bank charter. Bayer wins approval for a new menopause drug. Porsche suffers loss due to scaling back electric plans and tariffs. Market indices showed gains across stocks, currencies, cryptocurrencies, bonds, and commodities. Bitcoin and Ether prices rose, while bond yields remained stable. Crude oil and gold prices fluctuated. Overall, the market remains optimistic about a potential year-end rally amid ongoing economic challenges.

Read more at Yahoo Finance: Stocks Hit Highs as CPI Gives Fed All-Clear to Cut: Markets Wrap