04:38 PM EDT, 10/24/2025 (MT Newswires) -- US equity indexes rose at the close on Friday, breaking records, as a cooling of consumer price inflation in September strengthened the argument for more interest rate cuts.

The Nasdaq Composite climbed 1.2% to 23,204.9, after hitting a record 23,261.3 level earlier in the session. The S&P 500 advanced 0.8% to 6,791.7, also scaling a new peak of 6,807.1 intraday. The Dow Jones Industrial Average rose 1% to 47,207.1, recording an all-time high of 47,326.7 earlier in the day.

Technology and communication services were the top gainers intraday.

Barring Tesla (TSLA), all other stocks in the so-called Magnificent-7 category of index-heavy stocks rose on Friday.

The consumer price index rose 0.3% month-over-month in September, below August's seven-month high of 0.4%, according to the Bureau of Labor Statistics. A Bloomberg-polled consensus expected a 0.4% gain. Annually, inflation accelerated to 3% from 2.9% but remained below the 3.1% estimate. The annual index had fallen to a growth of 2.3% in April.

Core inflation, which excludes the volatile food and energy components, slowed to 0.2% from 0.3%, bringing the annual core measure to 3% from 3.1%. The market expected both metrics to remain unchanged. The annual growth rate is the lowest in three months.

The probability of a 25 basis-point reduction in interest rates in December stood at more than 92% by late Friday afternoon, according to the CME Group's FedWatch Tool. The likelihood of a cut of the same magnitude next week is 97%.

Macquarie Group continues to see a 25 basis-point cut from the Fed next week, David Doyle, head of economics, said in a note.

"Beyond this, we suspect one final 25 bps cut," Doyle said. "Our base case for this final cut remains 1Q26, although there is an increasing chance it occurs in December due to this month's favorable core reading and the ongoing government shutdown."

The federal government shutdown, reportedly the second-longest in US history, will extend into next week, as the Senate left town for the weekend without a deal, CNN reported. Their next votes are expected on Monday. Treasury Secretary Scott Bessent recently said that the political impasse, which began on Oct. 1, could be costing the US economy up to $15 billion per week.

September's inflation is among a host of other data that's been delayed due to the shutdown. White House Press Secretary Karoline Leavitt said on Friday on her verified X social media account that October inflation data will likely not be published due to the ongoing federal government shutdown, adding to the data fog within which the Fed will have to formulate policy.

Most US Treasury yields traded mixed. The 10-year yield rose one basis point to 4%. The two-year yield was little changed at 3.48%, albeit leaning to the downside.

In company news, IBM ( IBM ) disclosed it has run a key quantum computing algorithm on readily available chips made by Advanced Micro Devices ( AMD ) , bringing the company a step closer to commercializing supercomputers, Reuters reported Friday.

IBM ( IBM ) shares jumped 7.9%, the Dow's top gainer. Shares of Advanced Micro Devices ( AMD ) were up 7.6%, the top gainer on the Nasdaq.

Ford Motor ( F ) reported better-than-expected Q3 results, sending its shares 12% higher, the biggest gainer on the S&P 500.

Deckers Outdoor ( DECK ) reported fiscal Q2 earnings and sales that beat estimates, but its fiscal 2026 forecast for net sales missed expectations. Shares slumped 15% intraday, the steepest decline on the S&P 500.