The Dow Jones Industrial Average closed at a record high, rising 137.89 points or 0.3%, as a subdued inflation report fueled expectations of further Federal Reserve rate cuts. The August Personal Consumption Expenditure (PCE) index showed core prices rose less than expected, at 0.1% month over month, leading traders to anticipate a 0.50% rate cut in November. The S&P 500 dipped slightly, while the Nasdaq fell 0.4% to 20,008.61, though all three major indexes posted their third consecutive week of gains. The core PCE index, the Fed's preferred inflation gauge, reported a softer-than-expected increase of 2.6% year over year, which increased the probability of a 50 basis points cut at the next FOMC meeting to 53%. Small-cap stocks also benefited from the subdued inflation data, with 48 small-cap stocks recording double-digit gains. The Nasdaq 100 ended the week with a gain of 217.13 points.