U.S. stocks ended the week on a high note, with rallies in the S&P 500, Dow Jones, and Nasdaq following better-than-expected inflation data and reassurances from Fed officials. The PCE inflation index showed a slight increase of 0.1%, alleviating concerns over interest rate cuts. The Fed indicated it may now reduce rates only twice in 2025 instead of four times, spurring market optimism. While the week ended with a decline in major indices, traders now anticipate potential rate cuts in the upcoming year supported by economic resilience in consumer spending.