US Stocks Surge on Cooler Inflation Data, Intel Gains, Fed Rate Cut Bets

U.S. stock markets surged following cooler-than-expected September inflation data, which showed the Consumer Price Index rising 3.0% year-over-year, below estimates and fueling optimism for near-term Federal Reserve rate cuts. Major indices including the Dow, S&P 500, and Nasdaq reached record or near-record highs, supported by strong earnings from Intel and gains in chip stocks such as Nvidia, Broadcom, AMD, and Micron. Despite an ongoing government shutdown, investor sentiment remains positive, with projections of up to three rate cuts by March 2026. The Trump administration's trade discussions with China have eased some global trade tensions, although trade relations with Canada remain strained. Meanwhile, quantum computing stocks gained momentum amid rumors of increased investment under President Trump. Overall, technology and industrial sectors led the market rally, buoyed by earnings and favorable economic data.