The blue-chip Dow rose on Friday to hit an intraday record and small-cap stocks outperformed after a benign inflation report cleared the way for the Federal Reserve to focus on shoring up the labor market while continuing its interest rate easing.

Although economic stimulus plans from the Chinese government caused the Chinese stock market to jump, retail investors largely ignored the rally. Net buying of Chinese ETFs and ADRs from retail investors this week remained at muted levels compared to 2021.

The blue-chip Dow Jones Industrial Average closed at a record high today as investors welcomed a subdued inflation report that also lifted small-cap stocks which stand to benefit from more interest rate cuts by the Federal Reserve.