Key Takeaways
- Pivotal Inflation Data: Wall Street is keenly awaiting the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation.
- Fed Decision Looms: The PCE report is the last significant inflation reading before the central bank’s upcoming interest rate decision, making it a critical data point for investors.
- Market on the Rise: The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted gains as traders anticipated the economic release.
- Netflix Stock Dips: In major corporate news, Netflix shares fell over 4% after the streaming giant announced a massive $72 billion deal to acquire film and streaming assets from Warner Bros. Discovery.
U.S. stocks advanced on Friday as investors held their breath for crucial inflation data that could sway the Federal Reserve’s next move on interest rates. The market is looking for signs of a cooling economy that might encourage the central bank to ease its monetary policy.
Wall Street Awaits Key Inflation Data
The main event for traders is the upcoming release of the Personal Consumption Expenditures (PCE) price index from the Commerce Department. This report, which was delayed due to the recent record-setting U.S. government shutdown, is considered the Fed’s primary inflation gauge.
Its release is perfectly timed to give Fed officials their final comprehensive look at inflation before their policy meeting on December 10. Investors are hoping the data will show a continued easing of price pressures, which would strengthen the case for an interest rate cut. According to the CME FedWatch tool, traders are pricing in a high probability of a quarter-percentage point cut at the next meeting.
The Fed’s Next Move in Focus
The PCE report follows a series of mixed economic signals. While recent weekly jobless claims hit their lowest level since September 2022, other data from Challenger, Gray & Christmas showed that job cuts in November continued to climb, pointing to a potentially softening labor market.
“The data is mixed that we’re getting, and you’re seeing different signals. Inflation is still sticky where it is,” said Sonali Basak, iCapital chief investment strategist, on CNBC. Investors hope that any sign of economic slowing will be enough to prompt the Fed to act.
Market Movers: Netflix and Warner Bros. Discovery
While inflation data dominated the economic conversation, a blockbuster deal in the entertainment sector captured headlines. Netflix shares dropped more than 4% after the company announced it had struck a deal to acquire the film studio and streaming assets of Warner Bros. Discovery for an equity value of $72 billion.
The massive price tag appeared to spook Netflix investors, with some analysts suggesting “the math is going to hurt Netflix for a while.” Conversely, shares of Warner Bros. Discovery (WBD) jumped 3% on the news. The deal is expected to close in 12 to 18 months.
Image Referance: https://www.cnbc.com/2025/12/04/stock-market-today-live-updates.html
