US stocks moved higher on Friday after fresh inflation data strengthened expectations that the Federal Reserve will cut rates next week.
The S&P 500 rose 0.3% and is now close to its first record close since October. The Nasdaq Composite gained about 0.3%, putting it on track for its ninth positive finish in ten sessions. The Dow Jones Industrial Average added roughly 0.2%.
Traders continue to lean heavily toward a quarter-point rate cut on Wednesday. Market pricing now shows an 87% chance of a move lower, up sharply from 62% a month ago.
A delayed reading of the PCE price index showed inflation rising broadly in line with expectations for September. Core PCE, the Fed’s preferred gauge, cooled slightly to 2.8% year on year. Consumer confidence picked up for the first time in five months as respondents’ inflation expectations improved.
Jobs data has been mixed. Challenger reported 71,000 layoffs in November, the highest for the month since 2022. Weekly jobless claims fell to their lowest since September 2022, suggesting the labour market is cooling steadily rather than abruptly.
The session was dominated by news that Netflix will buy Warner Bros Discovery’s studios and streaming operations for $72 billion after a long bidding battle.
The agreement gives the assets an overall value of $82.7 billion and hands Netflix rights to major franchises including Harry Potter, Game of Thrones, DC titles and HBO’s library.
The deal will split off WBD’s remaining cable network division, which includes CNN and TNT Sports, before the studio assets move to Netflix. Completion is not expected until late 2026 or 2027 due to scrutiny from regulators in the US and Europe.
Concerns over competitive impact are already mounting, with Paramount arguing the auction process favoured Netflix. Analysts say potential divestments inside HBO could form a path to approval, though the review is expected to be long.
Netflix shares were down more than 3% in early trade before recovering much of the drop. WBD shares climbed more than 2%.
