Dow Jumps 472 Points as Stocks Rally Into the Close and Hit New Highs

By the closing bell Friday, U.S. equities advanced across the board: the Dow Jones Industrial Average rose 472.51 points (1.01%) to 47,207.1, the S&P 500 added 53.33 (0.79%) to 6,791.77, and the Nasdaq Composite gained 263.07 (1.15%) to 23,204.9. Small caps participated, with the Russell 2000 ETF up 3.03 (1.23%) to 249.45. Commodities eased into the afternoon, as Crude Oil Dec ’25 settled at $61.44, down 0.35 (−0.57%), while Gold Dec ’25 dipped to $4,129.10, off 16.50 (−0.40%).

Friday's market narrative hinged on a cooler September inflation print and a busy earnings slate ahead. Headline CPI rose 3.0% year over year and 0.3% month over month, easing fears of a re-acceleration and reinforcing bets that the Federal Reserve could soon pivot toward a gentler stance on rates and its balance sheet runoff, according to the Bureau of Labor Statistics.

Beneath the surface, the report underscored a familiar split: goods prices are behaving, while service-sector costs, particularly shelter, remain sticky. Shelter rose 3.6% from a year earlier, with rent up 3.4% and owners’ equivalent rent 3.8%; energy services climbed 11.7% on the year. By contrast, core goods advanced a modest 1.5%. Food showed mixed readings, with meats up 8.5% and eggs down 1.3% year over year. Transportation was uneven, including a one-month drop in used-vehicle prices offset by firmer airfares. These cross-currents help explain why traders see inflation cooling without collapsing—enough, for now, to keep a “Fed-is-done-tightening” narrative in play heading into next week’s meeting.

Tech remains the market’s gravitational center. Amazon, Apple, Alphabet, Meta, and Microsoft report next week, and Wedbush expects a strong showing on the back of enterprise AI demand. The firm pegs a $3 trillion AI spending wave over three years and estimates that every dollar spent on Nvidia can generate an $8–$10 multiplier across the broader ecosystem—a setup Wedbush argues could add 7%+ to tech into year-end in what it calls a “1996 moment, not 1999.”

Friday’s notable mover was Intel, which delivered better-than-expected results Thursday afternoon—$0.23 in adjusted EPS on $13.65 billion of revenue—and its first GAAP profit in six quarters. Yet the stock, which opened at $40 and traded below $38 by 3 p.m., slipped as investors weighed guidance and foundry economics against a sturdier balance sheet. Intel closed

Management highlighted liquidity from government and strategic partners and reiterated its process roadmap: “strategic role as the only U.S. semiconductor company with leading-edge logic R&D and manufacturing,” said CEO Lip-Bu Tan. CFO David Zinsner said the deals provide “flexibility to de-leverage and invest strategically in next-generation nodes.” Analysts were mixed, with Benchmark calling it the “first real turning point in years,” KeyBanc pointing to strength in CCG and DCAI despite constraints, and BofA warning the foundry remains “still sub-critical.”

Next week’s earnings and the Fed’s tone will test whether “good-enough” inflation can keep risk appetite intact as services inflation gradually grinds lower.