U.S. stocks rallied on Friday, buoyed by a cooler-than-expected inflation report from the Personal Consumption Expenditure (PCE) index, which showed a 2.4% annual rise in November, slightly below the expected 2.5%. Comments from Federal Reserve officials also eased concerns about the path of interest rates. The Dow Jones Industrial Average rose 498.82 points, or 1.18%, to close at 42,841.06, the S&P 500 gained 63.82 points, or 1.09%, to 5,930.90, and the Nasdaq Composite added 199.83 points, or 1.03%, to 19,572.60. Despite the rally, all three major indexes ended the week in the red, with the S&P 500 falling 1.99%, the Nasdaq declining 1.78%, and the Dow dropping 2.25%. This data led traders to slightly increase their expectations for Federal Reserve rate cuts in 2025, now anticipating the first cut in March and another by October.