Equities rallied across the board as investors embraced a softer inflation signal and a string of corporate results that have so far favored chipmakers. The Dow Jones Industrial Average closed above 47,000 for the first time after a tame consumer price index print helped calm inflation worries and rekindle appetite for risk. The advance represented a sharp reversal from midweek volatility, when markets had pared gains amid earnings uncertainty and geopolitical frictions.

The rebound followed a patchwork week that highlighted the competing forces driving markets. On Oct. 22, major indexes fell as investors digested a heavy slate of earnings and renewed U.S.-China trade tensions. Two days earlier the Dow had already touched record levels, and on Oct. 24 the softer inflation reading pushed stocks back toward those peaks. Market participants now are parsing conflicting signals: data that supports easier financial conditions on one hand, and central-bank caution on the other. Federal Reserve Chair Jerome Powell underscored that another rate cut in December was “not a foregone conclusion,” a phrase that injected fresh caution into expectations for policy easing.

Corporate news amplified sector rotation within the broader rally. Advanced Micro Devices reported results that investors judged strong enough to power a rebound in chip-sector sentiment, and AMD shares rose as traders re-evaluated growth prospects tied to artificial-intelligence demand. The chip complex has been a major driver of headline moves all month; earlier in October a Broadcom deal with OpenAI and comments from political leaders helped lift semiconductor stocks. Nvidia, meanwhile, reached a $5 trillion market capitalization during this volatile stretch, illustrating the concentration of market gains among a handful of large-cap technology names.

Not all technology names participated in the rebound. Palantir slipped further, extending its recent weakness amid an environment where investors are sorting winners from laggards in the AI ecosystem. The divergence between firms delivering clear, near-term revenue gains from AI-related products and those with longer, more uncertain monetization timetables is increasingly visible in stock performance.

Beyond headlines, the market is wrestling with a longer-term dynamic: a narrow leadership pattern that raises questions about breadth and sustainability. Softer inflation readings and the prospect of eventual easing would ordinarily support a broadening of gains, but Powell’s caution and lingering geopolitical risks suggest investors should remain selective. Bond yields and volatility remain sensitive to any changes in growth or policy signals, and upcoming earnings reports will be scrutinized for confirmation that corporate fundamentals can justify elevated valuations.

For now, the symbolic milestone of a 47,000 Dow and renewed strength in chipmakers like AMD underscore the market’s dual realities — enthusiasm over AI-driven earnings prospects and an ongoing dependence on central-bank guidance to sustain broader participation.