Stocks rallied sharply on Friday after new inflation data showed the Trump economy continuing to outperform expectations, giving Wall Street fresh momentum and easing concerns about persistent price pressures.
According to CNBC, the latest consumer price index report for September revealed that inflation rose just 0.3 percent for the month — below the 0.4 percent increase economists had projected. Data from the Bureau of Labor Statistics also showed the annual inflation rate holding at 3 percent, slightly under the anticipated 3.1 percent.
Core inflation — which strips out volatile food and energy prices to provide a clearer measure of underlying trends — also came in cooler than expected. The monthly core rate rose 0.2 percent, compared to forecasts of 0.3 percent, while the year-over-year core figure settled at 3 percent, again below the projected 3.1 percent.
The better-than-expected figures signaled continued progress in curbing inflation without undermining economic growth, reinforcing investor confidence in the strength and stability of the Trump economy.
Reaction from Wall Street was swift and enthusiastic. “The markets are on fire,” Fox Business anchor Maria Bartiromo exclaimed as trading surged following the release of the report.
🚨 “The markets are on fire!” — @MariaBartiromo on the stock market SOARING this morning after inflation comes in much BETTER than expected.
“CPI comes in better than expected. We came in 0.3% month-over-month… looking for 0.4%. Year-over-year headline CPI 3.0%… looking for… pic.twitter.com/pczyjeBtDs
— TV News Now (@TVNewsNow) October 24, 2025
The rally showed no signs of slowing through the morning.
By noon Eastern Time, the Dow Jones Industrial Average had climbed 1.2 percent, or 560 points, according to Google Finance. The S&P 500 gained 63 points, or 0.98 percent, while the Nasdaq Composite advanced 1.23 percent, or 281 points.
“Inflation came in below market expectations in September thanks to President Trump’s economic agenda,” White House Press Secretary Karoline Leavitt said in a post on X.
“This is good news for American families, and it’s a shame the Democrats are using them as ‘leverage’ to fund health care for illegal aliens,” she added.
Inflation came in below market expectations in September thanks to President Trump’s economic agenda.
This is good news for American families, and it’s a shame the Democrats are using them as ‘leverage’ to fund health care for illegal aliens.
Democrats choosing to keep the…
— Karoline Leavitt (@PressSec) October 24, 2025
“Democrats choosing to keep the government closed will likely result in no October inflation report, which will leave businesses, markets, families, and the Federal Reserve in disarray,” Leavitt warned.
According to CNBC, expectations for a Federal Reserve interest rate cut have now surged, with one tool estimating a 95 percent likelihood of a rate cut next month and a 98.5 percent chance of one in December.
August’s annual inflation rate stood at 2.9 percent, according to The Wall Street Journal, which also noted that fears of runaway inflation tied to President Donald Trump’s tariff policy have not materialized.
Meanwhile, the federal government collected roughly $30 billion in tariff revenue in September.