Lower-than-expected inflation boost US stock market

​​​​​​​By Gokhan Ergocun

ISTANBUL (AA) - The New York Stock Exchange closed the week higher after September inflation data fell short of expectations.

The Dow rose 1.01%, or 472.51 points, to close at 47,207.121.

The Nasdaq climbed 1.15%, or 263.07 points, to close at 23,204.87, while the S&P 500 increased 0.79%, or 53.25 points, to 6,791.69.

The Volatility Index (VIX), also known as the "fear index," fell 5.38% to 16.37.

Consumer prices rose 0.3% month-over-month, and 3% year-over-year in September, below expectations of 3.1%.

Following the inflation data, the money market sentiment was largely positive that the Fed would cut its policy rate by 25 basis points at its Oct. 28 – 29 meeting, while expectations remained strong that the central bank would continue the trend at its December meeting.

Furthermore, the consumer confidence index was revised downward to 53.6 in October.

Consumers' short-term inflation expectations fell from 4.7% to 4.6% in October, while long-term inflation expectations rose from 3.7% to 3.9%.

On the trade front, optimism surrounding upcoming trade talks with China bolstered the risk appetite.