Wall Street Hits Record Highs on Cooling Inflation, Strong Earnings

All three major U.S. stock indexes reached record closing highs following cooler-than-expected inflation data and strong corporate earnings, boosting optimism for the market. The Consumer Price Index (CPI) rose modestly, slightly below forecasts, which reinforced expectations of a 25-basis-point interest rate cut by the Federal Reserve at its upcoming meeting, with some traders anticipating additional cuts in the near term. Earnings season has been robust, with 87% of companies beating profit estimates and overall S&P 500 earnings growth now expected at 10.4% year-over-year, up from 8.8% at the start of October. Key technology giants, including Apple, Microsoft, and Alphabet, are set to report earnings next week, further influencing market sentiment. Strong performances from companies like Ford, Procter & Gamble, and Coinbase contributed to the positive momentum, while sectors tied to artificial intelligence, such as semiconductors, also saw notable gains. Despite the government shutdown causing some data release disruptions, investor confidence remains high, supported by both inflation trends and corporate earnings results.