US inflation stands at 3%, Wall Street hits new highs on cooling price data
The cooler-than-expected inflation reading lifted investor sentiment, sending US stock markets to new intraday highs on October 24. The Dow Jones Industrial Average jumped 514 points, or 1.1%. The S&P 500 gained 1%, while the Nasdaq Composite climbed 1.3%.
- Oct 24, 2025,
- Updated Oct 24, 2025 9:43 PM IST
US consumer inflation rose 3% year-on-year in September 2025, according to the Consumer Price Index (CPI) released by the Bureau of Labor Statistics on October 24. The increase comes amid a broader economic backdrop influenced by a government shutdown.
Data from the Bureau of Labor Statistics showed a slight uptick in inflation, with the CPI rising 3% in the 12 months ending September 2025, compared to 2.9% in August.
Month-over-month, prices rose 0.3% in September, easing slightly from a 0.4% increase in August, as per the CPI for All Urban Consumers.
The cooler-than-expected inflation reading lifted investor sentiment, sending US stock markets to new intraday highs on October 24. The Dow Jones Industrial Average jumped 514 points, or 1.1%. The S&P 500 gained 1%, while the Nasdaq Composite climbed 1.3%.
The rally followed strong gains in the previous session, buoyed by bullish sentiment ahead of third-quarter earnings. The S&P 500 had risen 0.6%, the Dow gained 144 points (0.3%), and the Nasdaq advanced 0.9%, driven by AI majors like Nvidia and Oracle.
Despite the slight rise in annual inflation, economists and policymakers still expect the Federal Reserve to cut interest rates by 25 basis points at its upcoming FOMC meeting.
Kevin Hassett, President Donald Trump’s top economic adviser, called the data a positive sign. “It was a really good report for a number of reasons,” Hassett said in a Fox Business interview. “Our expectation is that inflation is decelerating, and that will take all the pressure off the Fed to keep on the path that they’re on.”
US consumer inflation rose 3% year-on-year in September 2025, according to the Consumer Price Index (CPI) released by the Bureau of Labor Statistics on October 24. The increase comes amid a broader economic backdrop influenced by a government shutdown.
Data from the Bureau of Labor Statistics showed a slight uptick in inflation, with the CPI rising 3% in the 12 months ending September 2025, compared to 2.9% in August.
Month-over-month, prices rose 0.3% in September, easing slightly from a 0.4% increase in August, as per the CPI for All Urban Consumers.
The cooler-than-expected inflation reading lifted investor sentiment, sending US stock markets to new intraday highs on October 24. The Dow Jones Industrial Average jumped 514 points, or 1.1%. The S&P 500 gained 1%, while the Nasdaq Composite climbed 1.3%.
The rally followed strong gains in the previous session, buoyed by bullish sentiment ahead of third-quarter earnings. The S&P 500 had risen 0.6%, the Dow gained 144 points (0.3%), and the Nasdaq advanced 0.9%, driven by AI majors like Nvidia and Oracle.
Despite the slight rise in annual inflation, economists and policymakers still expect the Federal Reserve to cut interest rates by 25 basis points at its upcoming FOMC meeting.
Kevin Hassett, President Donald Trump’s top economic adviser, called the data a positive sign. “It was a really good report for a number of reasons,” Hassett said in a Fox Business interview. “Our expectation is that inflation is decelerating, and that will take all the pressure off the Fed to keep on the path that they’re on.”