MSCI’s global shares index gained on Friday, butU.S.. Treasury yields fell with the dollar after good inflation data from Europe and the U.S. raised investor expectations that the Federal Reserve may be done raising rates.

The annual growth in prices, excluding food and energy, fell below 4.0% for the first time in more than two years in August, which is good news for the Fed as it considers monetary policy.

Headline inflation in the euro region rose less than expected and to its lowest level in two years, benefiting hawkish central banks.

“We fear we may not be at peak interest rates and yet be fighting inflation. Invesco global market strategist Brian Levitt said this study shows peak rates may be here.U.S.. Treasury yield curve interest rates are lower. The currency is falling as we worry less about rate rises. Longer-term investments like growth stocks are outperforming.”

According to CME Group’s Fedwatch tool, traders wagered 82.7% that the Fed will leave rates constant at its November meeting, up from 80.7% on Thursday.

Dow Jones Industrial Average (.DJI) increased 78.76 points, or 0.23%, to 33,745.1, S&P 500 (.SPX) gained 27.35 points, or 0.64%, to 4,327.05, and Nasdaq Composite (.IXIC) jumped 152.39 points, or 1.15%, to 13,353.67

The pan-European STOXX 600 index (.STOXX) jumped 0.78%, while MSCI’s global stock index (.MIWD00000PUS) rose 0.66%.

While the dollar was heading for its highest quarterly gain in a year, it pulled off 10-month highs, providing the yen some breathing room as the Japanese currency continues under scrutiny for government intervention.

Friday’s yen-dollar rate was 149.13, up 0.10%. The dollar index declined 0.16% as the euro rose 0.27% to $1.0587.

Sterling was recently trading at $1.221, up 0.11% after statistics revealed Britain’s economic performance since the COVID-19 epidemic was higher than expected.

After the inflation report, 10-year Treasury rates fell 7.1 basis points to 4.526% from 4.597% late Thursday. Last down 6.6 basis points, the 30-year bond yielded 4.6626% from 4.729%. Last, the 2-year note yielded 5.0373%, down 3.4 basis points from 5.071%.

Oil prices fell after increasing earlier due to restricted U.S. supplies and forecasts of robust gasoline demand in China over Golden Week. U.S.. crude declined 1.07% to $90.73, while Brent fell 0.15% to $95.24.

Gold fell 0.2% to $1,861.79 an ounce.U.S.S gold futures dipped 0.06% to $1,859.30. After the inflation news, the retreating dollar and Treasury yields helped bullion rise, but increased U.S. interest rates were expected to lower monthly and quarterly.