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.

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.

The blue-chip Dow Jones Industrial Average closed at a record high on Friday as a subdued US inflation report lifted expectations of an outsized interest rate cut at the Federal Reserve's November policy meeting.