US stocks were mixed on Thursday but the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) finished higher to close their best month this year as investors continued to bet on interest rate cuts after a key reading on consumer inflation.

The Dow Jones Industrial Average paced gains with a jump of nearly 1.5%, or more than 500 points, reaching a new closing high for 2023. The S&P 500 popped nearly 0.4%, reversing earlier losses, and the tech-heavy Nasdaq Composite (^IXIC) fell 0.2%. All three of the major averages finished the month of November with their highest monthly gains in 2023.

November's monster rally was powered by optimism that the Federal Reserve is done with hiking interest rates.

On Thursday, stocks were buoyed by the release of the PCE index, the Fed's preferred inflation measure, which came in line with expectations in showing that inflation cooled to its lowest levels since 2021. The print could add more fuel to the notion that the Fed is done with hiking this cycle and may cut rates sooner than thought.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Thursday also brought a surprise November drop in euro zone inflation to 2.4%, seen as challenging the European Central Bank's stance that price growth is stubborn.

Oil prices swung as OPEC+ agreed to additional output curbs of 1 million barrels per day, but lack of specificity led to skepticism over each country's commitment. WTI (CL=F) fell nearly 3% to trade below $76 a barrel, while Brent (BZ=F) crude futures slipped to below $83.

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