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Wall Street stock markets closed higher on Friday, driven by lower-than-expected inflation data. Forex market
The development raised the prospect of a rate cut by the Federal Reserve (Fed).
Market sentiment was also supported by earnings forecasts from chipmaker Micron Technology, which signaled that demand for artificial intelligence (AI) remained strong.
The Consumer Price Index (CPI) report recorded a more moderate increase in consumer prices through November, slightly below market expectations.
However, the US Bureau of Labor Statistics (US) did not release CPI monthly change data for October because the 43-day government shutdown disrupted data releases.
Last week's jobless claims data also showed a decline in new applications, reversing the previous week's surge and signaling a stabilization in the labor market in December.
In other developments, the official jobs report earlier this week recorded a recovery in job growth in November, although the unemployment rate rose to 4.6%.
All three major Wall Street indexes recovered from three-week lows. The Russell 2000 index, which represents small-cap companies, rose 0.8%.
The Dow Jones Industrial Average rose 0.14% to 65.88 points, the S&P 500 rose 0.79% to 53.33 points, and the tech-focused Nasdaq Composite rose 1.37% to 313.04 points.
Meanwhile, Lululemon shares rose 3.5% after the company reportedly acquired a stake worth more than $1 billion. Starbucks also rose 4.9%.
Micron Technology shares rose 10.2% after forecasting quarterly profit that was nearly double analysts' expectations, supported by strong demand in the AI sector.
Trading volume on the US exchange was worth $16.89 billion, compared to an average of $16.96 billion over the past 20 trading days.
