US stock market surges today – Why is stock market rising today – Dow, S&P 500, Nasdaq all gaining as cooling inflation and strong corporate earnings boost Wall Street …

U.S. stock markets surged to record highs on Friday, October 24, 2025, after a cooler-than-expected inflation report lifted investor optimism. The Dow Jones Industrial Average jumped 400 points, closing at a historic high. The S&P 500 rose 0.79%, while the Nasdaq Composite climbed 1.03%, fueled by strong gains in technology and semiconductor stocks, including Intel, AMD, Micron, and Nvidia.

Smaller companies also saw gains, with the Russell 2000 index up 0.9%, showing optimism across both large and small-cap stocks. Analysts say the broad-based rally reflects growing confidence in the economy and expectations that the Federal Reserve could cut interest rates soon.

The September Consumer Price Index (CPI) rose 3.0% year-over-year, slightly below the 3.1% forecast, and 0.3% month-over-month, under the expected 0.4%. Core inflation remained stable. Investors interpreted the report as a sign that inflation pressures are easing, increasing the likelihood of Fed rate cuts.
Markets are now pricing in a 25 basis point Fed rate cut at the October 29 meeting, with some analysts projecting up to two more cuts by March 2026 if inflation remains moderate. The Fed has already reduced rates once this year, lowering the benchmark to 4.00%–4.25% in September. Despite gains, a 24-day government shutdown has limited access to fresh economic data, keeping some caution in the market.

Top gainers included Nvidia (+4.2%), AMD (+6.5%), Intel (+3.8%), and Micron Technology (+3.1%). Apple rose 2.6% and Microsoft 2.4%, boosted by strong tech earnings and cloud revenue growth. Major decliners were Boeing (-2.1%), Exxon Mobil (-1.8%), Chevron (-1.6%), Pfizer (-1.4%), and Coca-Cola (-1.2%).

Investors remain optimistic but cautious. Strong corporate earnings and expected Fed action have driven record highs, while uncertainties such as the government shutdown, global trade risks, and geopolitical concerns continue to influence sentiment.The rally is supported by three main factors: easing inflation, anticipated Fed rate cuts, and strong earnings in technology and semiconductor sectors. The upcoming Federal Reserve meeting on October 29 will be key in shaping market trends into early 2026.Despite the bullish sentiment, uncertainty remains. A 24-day government shutdown has limited new economic data, leaving some investors cautious. However, strong corporate earnings and improving trade relations are providing additional support for the rally.

How did the Dow and other indexes perform today?

The stock market showed strong gains across the board. The Dow, S&P 500, Nasdaq, and Russell 2000 all climbed to new levels.

• Dow Jones Industrial Average: up 400 points, or 0.78%, closing at a record high.
• S&P 500: gained 0.79%, also reaching a new all-time high.
• Nasdaq Composite: advanced 1.03%, led by semiconductor and tech stocks.
• Russell 2000: rose 0.9%, reflecting strength in small-cap stocks.

Investors focused on companies reporting strong earnings. Technology and semiconductor companies, including Intel, AMD, Micron, and Nvidia, were the biggest contributors to gains.

The positive sentiment was not limited to large-cap stocks. Smaller and mid-cap indexes also reflected investor optimism.

What did the latest inflation report reveal?

The September Consumer Price Index (CPI) showed slower growth than expected, which fueled market optimism.

Key data points from the report:

• Annual CPI increase: 3.0%, slightly below the expected 3.1%.
• Monthly CPI change: 0.3%, lower than the forecasted 0.4%.
• Core inflation, which excludes food and energy, also remained steady.

Investors interpreted this as a sign of easing inflation pressure.

Many are now pricing in a 90% probability of a 25 basis point rate cut by the Federal Reserve at its October 29 meeting. Analysts also expect two more cuts by March 2026.

This data has reinforced confidence that the Fed may act soon to support economic growth.

Why is the Federal Reserve considering rate cuts now?

The Federal Reserve has already reduced interest rates once this year. In September 2025, it cut the benchmark rate by 25 basis points to a range of 4.00%–4.25%.

Reasons behind the Fed’s cautious approach:

• Softening labor demand in some sectors.
• Ongoing inflation concerns that need monitoring.
• Global economic uncertainty, including trade relations and geopolitical risks.

Fed Chair Jerome Powell emphasized that recent cuts are a risk management move, not a response to a recession.

Investors are closely watching Fed communications to anticipate future rate adjustments. Rate cuts are expected to boost stock market sentiment further if inflation remains under control.

Top Gainers in US Stock Market Today:

• Nvidia (NVDA): +4.2%, driven by strong AI chip demand.
• Intel (INTC): +3.8%, boosted by better-than-expected earnings report.
• AMD (AMD): +6.5%, fueled by semiconductor sector rally.
• Micron Technology (MU): +3.1%, gains on robust memory chip sales.
• Apple (AAPL): +2.6%, supported by optimistic tech earnings outlook.
• Microsoft (MSFT): +2.4%, lifted by cloud revenue growth.

Top Losers in US Stock Market Today:

• Boeing (BA): -2.1%, impacted by weaker-than-expected airline orders.
• Exxon Mobil (XOM): -1.8%, dragged by falling crude oil prices.
• Chevron (CVX): -1.6%, affected by energy sector pullback.
• Pfizer (PFE): -1.4%, declined after mixed earnings report.
• Coca-Cola (KO): -1.2%, pressured by lower-than-expected beverage sales.
• Walmart (WMT): -1.0%, slipped on cautious consumer spending outlook.
• Johnson & Johnson (JNJ): -0.9%, modest losses despite steady earnings.

How are investors reacting to the market and economic data?

Market participants are optimistic but cautious. While the inflation data is positive, some uncertainties remain.

Factors shaping investor sentiment today:

• Government shutdowns: A 24-day partial shutdown has limited access to new economic data.
• Corporate earnings: Strong quarterly results from major companies are fueling gains.
• Trade and international relations: Upcoming meetings between U.S. and Chinese leaders could ease trade tensions.

Investors are balancing optimism with caution. Many are positioning portfolios to benefit from potential Fed rate cuts while monitoring economic risks.

The combination of cooling inflation and expected rate cuts has created a bullish environment, pushing major indices to record highs.

What does this mean for the average investor?

For everyday investors, these developments offer both opportunities and challenges.

Potential impacts include:

• Stock market gains: Rising indices may increase portfolio values.
• Lower borrowing costs: If the Fed cuts rates, loans and mortgages could become cheaper.
• Interest-sensitive sectors: Utilities, real estate, and consumer discretionary stocks could benefit from lower rates.
• Caution for bond investors: Rate cuts may reduce yields on new bonds, impacting fixed-income portfolios.

Investors should maintain diversified portfolios and stay informed about upcoming Fed decisions.

Why the market is optimistic

The market’s record highs are driven by three main factors:

1. Cooling inflation – CPI numbers came in below expectations.
2. Fed rate cut expectations – Investors anticipate at least one 25 basis point reduction.
3. Corporate earnings strength – Big tech and semiconductor companies are performing well.

This environment creates short-term gains, but investors should remain mindful of economic uncertainties.

The next Federal Reserve meeting on October 29 will be critical. It will likely shape the market’s path into the end of 2025 and early 2026.