Canada's main stock exchange surged on Friday as U.S. consumer inflation data eased market concerns about persistent price pressures. The S&P/TSX composite index gained 552 points or 1.7% to 33,015.27, rebounding from Thursday's 2.4% decline that had pushed the index to 32,465.28.

U.S. stocks also advanced, with the S&P 500 up 0.2% to 6,844.95 and the Dow Jones Industrial Average rising 0.3% to 49,581.38. The gains came after January CPI data showed headline inflation at 2.4% year-over-year, below the 2.5% consensus estimate and down from December's 2.7%. On a monthly basis, CPI rose 0.2%, also below expectations.

Tech stocks remained in focus after mixed earnings reports. Arista Networks and Applied Materials delivered upbeat outlooks, while Pinterest forecast weaker first-quarter revenue. The CME Fedwatch tool showed traders slightly increasing bets on potential Fed rate cuts this year, though markets remain cautious about inflation's trajectory and its impact on monetary policy decisions.