Markets Climb as Fed’s Preferred Inflation Gauge Cools
US stocks nudged higher on Friday after a delayed reading of the PCE price index, the Federal Reserve’s favored inflation measure, showed inflation easing in line with expectations. Core PCE rose 2.8% year over year, a mild deceleration that keeps the Fed on track for a potential rate cut next Wednesday.
The S&P 500 gained 0.3%, staying within reach of its first record close since October. The Nasdaq Composite added 0.3%, marking what could be its ninth positive session in ten days. The Dow rose 0.2%.
Rate-cut expectations continue to build: traders are now pricing in 87% odds of a quarter-point cut, up from 62% just one month ago, per CME FedWatch.
US consumer confidence also ticked higher for the first time in five months, helped by cooler inflation expectations. Labor data, however, shows a mixed backdrop:
- US companies cut 71,000 jobs in November — the worst since 2022.
- Yet jobless claims fell to their lowest level since September 2022.
The picture remains one of a labor market cooling gradually, not collapsing.
Netflix–Warner Bros. Deal Stays in Focus
Markets also digested confirmation that Netflix will acquire Warner Bros. Discovery’s film studio and HBO Max for $72 billion. Netflix shares slipped, while WBD rose 2% as Wall Street weighed both the strategic upside and the likelihood of antitrust scrutiny.
Trending Tickers
Netflix (NFLX) & Warner Bros. Discovery (WBD)
NFLX fell 3% while WBD climbed 2% as investors assessed regulatory risks surrounding the blockbuster acquisition.
SoFi Technologies (SOFI)
Shares slid more than 6% after SoFi announced plans to raise $1.5 billion through a new share offering priced between $27.50 and $28.50.
Rubrik (RBRK)
The AI security company jumped 23% after raising its 2026 revenue outlook. CEO Bipul Sinha said demand is accelerating as companies scramble to prepare for an AI-driven future.
SMX (Security Matters)
The day’s most volatile mover — SMX soared 128% on a short squeeze and is up over 317% for the week.
Ulta Beauty (ULTA)
Up 13% after raising full-year EPS guidance to $25.20–$25.50, above prior expectations.
Walmart (WMT)
Hit a new intraday all-time high of $116.27, continuing its strong post–Black Friday momentum.
WSA Take
Cooling PCE solidifies the narrative investors have been waiting for: inflation is easing without a sharp economic downturn. Markets are rallying into next week’s Fed decision with expectations firmly anchored around a cut. If delivered, it could extend the year-end momentum across equities — especially rate-sensitive sectors and high-growth names.
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