The Dow Jones Industrial Average (DIA) closed at an all-time high after new data showed that inflation in the U.S. continues to trend down towards the U.S. Federal Reserve’s 2% target. The leading index that is comprised of 30 blue-chip stocks and meant to act as a proxy for the U.

The Dow Jones Industrial Average closed at a record high, driven by investor optimism following a subdued inflation report. While the Nasdaq and S&P 500 edged slightly lower, all three indexes posted their third consecutive week of gains.

By Caroline Valetkevitch NEW YORK (Reuters) -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.

Major stock averages finished mixed Friday, with the Dow Jones Industrial Average (DJI) posting a new record closing high after the Fed's preferred inflation measure cooled further in August, while tech stocks weighed on Wall Street's other key indexes.

The blue-chip Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which also boosted small-cap stocks and enabled Wall Street's three main indexes to post weekly gains.