U.S. Stock Market Rises Amid Easing Inflation and Upcoming Labor Reports

U.S. stock markets witnessed a modest rise as small-cap stocks outperformed, buoyed by a favorable inflation report. This paved the way for the Federal Reserve to maintain focus on labor markets while considering more interest rate cuts. Major indices marked gains, with particular movement observed in energy and technology sectors.

U.S. stock indices edged higher on Friday, driven by a favorable inflation report that allowed the Federal Reserve to focus on labor market stability while easing interest rates.

The Dow Jones Industrial Average increased by 0.34%, S&P 500 by 0.08%, and Nasdaq Composite by 0.07%. Small-cap stocks excelled, as evidenced by the Russell 2000's 0.7% rise.

Inflation moderating towards the 2% target gave the central bank leeway to cut rates further. The major indices saw contributions from energy stocks, while tech companies like Nvidia and Amazon experienced declines. Upcoming labor market reports are now under scrutiny.

(With inputs from agencies.)