U.S. stocks posted modest gains for the week, with the tech-heavy Nasdaq up 0.9%, the Dow climbing 0.5%, and the S&P 500 rising 0.3%. The strength followed inflation data that largely met expectations, as the Commerce Department reported the PCE price index rose 0.3% in September, matching August's increase, while the annual rate moved up slightly to 2.8%.

Excluding food and energy, core PCE rose 0.2% for the month, with the annual rate easing to 2.8% from 2.9%, signaling a mild slowdown in inflation. The data boosted optimism about interest rate cuts ahead of the upcoming Federal Reserve meeting, where markets widely expect a quarter-point reduction, with CME's FedWatch Tool showing an 87.2% probability of a rate cut.

Computer hardware stocks extended the strong upward move, with the NYSE Arca Computer Hardware Index climbing by 1.7%. Airline stocks was significantly strong, as reflected by the 1.5% gain posted by the NYSE Arca Airline Index. Networking, semiconductor and software stocks too saw notable strength while steel stocks significantly moved to the downside.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index slumped by 1.1% while South Korea's Kospi surged by 1.8%. The major European markets also turned mixed while the German DAX Index climbed by 0.6%, the French CAC 40 Index edged down by 0.1% and the U.K.'s FTSE 100 Index fell by 0.5%.

In the bond market, treasuries extended the downward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.1 basis points to 4.13%.

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