NEW YORK/PARIS, Oct 24 (Reuters) - Major stock indexes rose, with U.S. stocks hitting record highs, and benchmark U.S. Treasury yields briefly fell on Friday as data showed U.S. inflation rose less than expected last month, reinforcing expectations that the Federal Reserve will cut interest rates at its policy meeting next week.
Oil prices, which had risen 5% Thursday after the U.S. sanctioned major Russian oil companies, gained further, while the U.S. dollar was flat.
The U.S. Consumer Price Index rose 0.3% last month, slightly less than the expected 0.4%, after climbing 0.4% in August.
"Today’s inflation data shows that we're not in a crisis like 2022. Prices are growing, but at a controlled pace. That’s good news if you’re hoping the Fed will continue to cut interest rates," said Callie Cox, chief market strategist at Ritholtz Wealth Management in Charlotte, North Carolina.
The Fed is expected to reduce rates two more times this year, with a quarter-percentage-point cut baked in for the October 28-29 meeting, according to LSEG calculations using rate futures.
The Canadian dollar saw limited impact from U.S. President Donald Trump saying on social media that he was ending all trade negotiations with Canada. The Canadian dollar was last down 0.28% versus the greenback at C$1.4 per dollar.
Adding to optimism on Wall Street, shares of Intel (INTC.O), were up 1.3% after its results late Thursday beat expectations.
The Dow Jones Industrial Average (.DJI), rose 346.77 points, or 0.74%, to 47,081.38, the S&P 500 (.SPX), rose 52.67 points, or 0.78%, to 6,791.01, and the Nasdaq Composite (.IXIC), rose 251.42 points, or 1.10%, to 23,193.53.
Five of the so-called "Magnificent Seven" U.S. companies at the center of the artificial intelligence boom, including Apple (AAPL.O), and Microsoft (MSFT.O), are due to report earnings next week. U.S. stock markets have surged this year, and some analysts see signs of a bubble.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), rose 6.22 points, or 0.63%, to 1,001.31. The pan-European STOXX 600 (.STOXX), index rose 0.1%.
The U.S. dollar was nearly flat Friday, after a dip that followed the U.S. inflation data.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.03% to 98.97, with the euro up 0.07% at $1.1625. Against the Japanese yen , the dollar strengthened 0.15% to 152.81.
Euro zone business activity unexpectedly grew at a faster pace in October, data showed. Euro zone government bond yields rose.
U.S. Treasury yields were narrowly mixed on Friday, with the 10-year yield briefly easing after the CPI data.
The yield on benchmark U.S. 10-year notes was last up 0.2 basis points at 3.991%, from 3.989% late on Thursday. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, was down 1.5 basis points at 3.467%, from 3.482% late on Thursday.
U.S. crude rose 0.73% to $62.24 a barrel and Brent rose to $66.52 per barrel, up 0.8% on the day.
Spot gold fell 0.03% to $4,123.69 an ounce.
Reporting by Caroline Valetkevitch in New York and Elizabeth Howcroft in Paris; additional reporting by Laura Matthews in New York; editing by Toby Chopra, Joe Bavier, Alison Williams and Edmund Klamann
