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 Dow Jones Industrial Average hit an intraday record as small-cap stocks outperformed following a positive inflation report. The Federal Reserve is expected to focus on the labor market while continuing interest rate easing.

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