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.

Treasury yields and the dollar fell while the Dow registered a record closing high on Friday as a subdued U.S. inflation report lifted expectations of an outsized interest rate cut at the Federal Reserve's November policy meeting.