NEW YORK, Oct 24 (Reuters) – Cooler-than-expected inflation data and upbeat corporate earnings lifted all three major U.S. stock indexes to record closing highs on Friday, setting a positive tone ahead of next week’s Federal Reserve interest rate decision and another wave of earnings reports.

The S&P 500 and the Nasdaq posted their biggest weekly percentage gains since August, while the Dow Jones Industrial Average recorded its strongest Friday-to-Friday rise since June.

The Consumer Price Index (CPI), released by the Labor Department, showed inflation remained elevated in September but was slightly cooler than analysts had anticipated. The data helped ease fears that tariffs were intensifying price pressures and reinforced expectations of a 25-basis-point Fed rate cut at next week’s policy meeting.

The CPI report stood out as one of the few official economic indicators released amid the ongoing government shutdown, which has halted most federal data publications due to a congressional funding standoff.

“We got some good news on the inflation front as the benign CPI data opened the door for Fed rate cuts next week and likely in December,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.

Earnings season also added momentum. According to LSEG data, 143 companies in the S&P 500 have reported so far, with third-quarter earnings growth now expected to reach 10.4% year-on-year, up from 8.8% projected at the start of October.

“It’s been a spectacular start to earnings season,” Detrick added. “We’ve seen 87% of companies beat on earnings and 83% on revenue, justifying the rally we’ve seen this year and likely opening the door for a strong end-of-year rally as well.”

Investors now look ahead to next week’s high-profile reports from Meta Platforms, Microsoft, Alphabet, Amazon.com, and Apple — five of the so-called “Magnificent Seven” tech giants. Other key names set to report include industrial heavyweights Caterpillar and Boeing.