U.S. stocks hit records on Friday after an update on inflation was less painful than expected. The S&P 500 rose 0.8%, Dow Jones rallied 472 points, and Nasdaq climbed 1.1%, all setting records. This data could mean less pain for struggling households and could lead to more interest rate cuts by the Federal Reserve.

Following a positive inflation report, traders are betting on near certain interest rate cuts at the next two Fed meetings. Stocks had been shaky, but rebounded each time. Big U.S. companies are reporting stronger profits than expected, with Ford Motor leading S&P 500 companies with a 12.2% increase.

Intel’s profit for the latest quarter surpassed expectations, while Google’s parent company climbed 2.7% after an expansion announcement worth tens of billions of dollars. Procter & Gamble also beat profit forecasts. Newmont Mining fell 6.2% despite reporting stronger profits, with gold prices stalling after a surge.

The S&P 500, Dow Jones, and Nasdaq all rose, with global markets also seeing gains. Treasury yields held steady as inflation expectations rise. A University of Michigan report said U.S. consumer inflation expectations remain mixed, which can impact future inflation rates and economic behavior.

Read more at Yahoo Finance: Wall Street hits records following an encouraging update on inflation