U.S. equity futures gained on Friday as the latest inflation data raised investors’ optimism about how many more times the Federal Reserve could cut rates this year. Futures tied to the Dow Jones Industrial Average added 202 points, or 0.4%. S&P futures gained 0.6%, while Nasdaq 100 futures added 0.8%. The September consumer price index report rose 0.3% on the month, bringing the annual inflation rate to 3%, according to the Bureau of Labor Statistics. That’s just below the 0.4% and 3.1% that economists polled by Dow Jones had expected. While the data was lighter than expected, the headline inflation rate still marked an uptick from the 2.9% seen in August. When excluding food and energy, core CPI came in at 0.2% last month and 3% on a 12-month basis, also lighter than the Dow Jones forecasts for 0.3% and 3.1%, respectively. The report has grown in importance given the lack of federal data being released amid the ongoing U.S. government shutdown, which entered its 24th day Friday. Traders were betting that an in-line or lighter CPI would pave the way for the Fed to cut rates at its two remaining meetings in 2025, which are set to take place next week and in December. Following the CPI data, traders increased their bets on a December rate cut, while a cut next week remained a near certainty. Odds for a December cut jumped to 98.5% from 91% before the data, according to the CME Fedwatch tool. Odds for a cut next week remained around 98%-99%. “There was little in today’s benign CPI report to ‘spook’ the Fed and we continue to expect further easing at next week’s Fed meeting,” said Lindsay Rosner, head of multi sector fixed income investing at Goldman Sachs Asset Management. “A December rate cut also remains likely with the current data drought providing the Fed with little reason to deviate from the path set out in the dot plot.” Stock futures largely ignored a proclamation from President Donald Trump that he was ending trade negotiations with Canada because of an advertisement used by Ontario featuring former President Ronald Reagan “speaking negatively” about tariffs. The ad, which Trump deemed “FAKE,” quotes Reagan’s presidential radio address from April 1987, in which the former president says that “trade barriers hurt every American worker and consumer” in the long run. A number of strong earnings results helped sentiment on Friday. Intel shares popped 5% in early trading after the chipmaker reported third-quarter sales that exceeded analysts’ estimates. Additionally, Procter & Gamble gained 3% after its first-quarter earnings and revenue topped Wall Street’s expectations. The three major U.S. indexes ended the previous session higher, driven by inflows into tech stocks and bullish sentiment heading into the heat of third-quarter earnings season. The S&P 500 rose nearly 0.6%, while the Dow Jones Industrial Average gained 144 points, or 0.3%. The tech-heavy Nasdaq Composite outperformed, closing the day 0.9% higher as heavyweight AI stocks such as Nvidia and Oracle got a boost. Stocks are on pace to notch weekly gains, after Thursday’s moves erased Wednesday’s losses. The S&P 500 is tracking for a 1.1% gain, while the Nasdaq and the 30-stock Dow are up nearly 1.2% week to date. South Korea’s Kospi rose over 2% to hit a record high on Friday, amid regional gains after the White House said that U.S. President Donald Trump and China’s President Xi Jinping were set to hold talks next week. The index closed 2.5% higher at 3,941.59. South Korea’s small-cap Kosdaq was 1.27% higher at 883.08. Japan’s benchmark Nikkei 225 index climbed 1.35% to end the trading day at 49,299.65, while the Topix added 0.48% to close at 3,269.45. Japan’s core inflation rate accelerated to 2.9% in September, the first increase since May and in line with expectations from economists polled by Reuters. Australia’s ASX/S&P 200 lost 0.15% to close at 9,019. Hong Kong’s Hang Seng Index rose 0.77%, while mainland CSI 300 added 1.18% to end at 4,660.68.