NYSE finishes week higher on hopes of fed rate cut
The Dow Jones Industrial Average increased 0.22%, or 104.05 points, to finish at 47,954.99.
The Nasdaq Composite rose 0.99%, or 72.99 points, to 23,578.13, while the S&P 500 added 0.19%, or 13.28 points, to 6,870.40. Meanwhile, the Volatility Index (VIX), often called the “fear index,” declined 2.34% to 15.41.
Investors have been digesting macroeconomic indicators ahead of the Fed’s meeting, focusing on signs from the labor market and inflation trends. Data released this week showed that personal consumption expenditures grew 0.3% in September, meeting expectations. The core personal consumption expenditures (PCE) price index, which excludes food and energy and is closely monitored by the Fed as an inflation gauge, rose 0.2% monthly and 2.8% annually in September, slightly below the anticipated annual increase of 2.9%.
Consumer sentiment also showed improvement, with confidence rising to 53.3 in December, surpassing expectations. At the same time, short-term inflation expectations among consumers declined to 4.1%, the lowest reading since January. These factors have reinforced predictions that the Fed could reduce interest rates at its final Federal Open Market Committee session of the year.
On the corporate front, Netflix announced an agreement to acquire Warner Bros., including its film and television studios, HBO Max, and HBO, for $72 billion in equity value and $82.7 billion in total company value. Following the announcement, Netflix shares fell 2.9%, while Warner Bros. Discovery shares gained 6.3%.
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