After Thursday's broad-based tech selloff, Wall Street staged a rebound as a softer-than-expected inflation print reinforced expectations for interest-rate cuts during the year.

The annual inflation rate slowed from 2.7% to 2.4% in January, undershooting forecasts of 2.5% and marking the lowest reading since May 2025.

Core inflation, which strips out food and energy, also cooled, easing from 2.7% to 2.5% year over year, the lowest level since March 2021.

Small caps led the advance. The Russell 2000, a benchmark for small-cap stocks, climbed nearly 1.8%, outperforming its large-cap peers.

In commodities, gold jumped 2% to trade above $5,000, fighting to end the week in positive territory. Silver surged almost 4%, topping $77 per ounce.

Bitcoin (CRYPTO: BTC) also caught a bid, rallying 4.6% and positioning to snap a four-day losing streak.

Corporate earnings were broadly supportive. Applied Materials Inc. (NASDAQ:AMAT) soared 9% after delivering upbeat quarterly results. Arista Networks Inc. (NYSE: