Stocks Nudge Higher As Wall Street Waits On Inflation — While Netflix Sinks On Warner Bros Deal

CNBC, Investor’s Business Daily, and Reuters contributed to this report.

US stocks moved cautiously higher Friday as traders waited for a key inflation report that could help lock in the Federal Reserve’s next interest rate cut.

The S&P 500 was up about 0.3%, the Nasdaq Composite gained roughly 0.4%, and the Dow Jones Industrial Average added around 62 points, or 0.1%.

The one big red name on the screen: Netflix.

Shares fell about 2% after the streamer confirmed a $72 billion cash-and-stock deal to buy Warner Bros. Discovery’s film studio and streaming business, including HBO Max. The acquisition is expected to close within 12 to 18 months, pending regulatory approval.

Investors weren’t thrilled with the price tag, even as Warner Bros. Discovery (WBD) stock popped roughly 2% on the news.

Friday’s modest rally comes with a big asterisk: inflation data is due shortly, and it’s the last major read before the Fed’s Dec. 10 interest rate decision.

On deck:

• Personal Consumption Expenditures (PCE) price index for September — the Fed’s preferred inflation gauge, delayed by the long government shutdown;
• Updated data on consumer spending and incomes from the Commerce Department;
• The University of Michigan’s December consumer sentiment survey, including expectations for inflation in the near and longer term.

Traders are already heavily betting the Fed will cut rates by a quarter point next Wednesday. Futures markets are pricing in about an 87% chance of a cut, a big jump from just a couple weeks ago. The federal funds rate currently sits in a 3.75%–4% target range.

The economic data picture hasn’t exactly been clear.

On one side:

• A report from Challenger, Gray & Christmas showed announced job cuts in 2025 have topped 1 million, with restructuring, AI and tariffs all contributing.

On the other:

• Jobless claims fell to their lowest level since September 2022, signaling that people are still hanging on to their jobs despite the headlines about layoffs.

So far, those conflicting signals haven’t shaken Wall Street’s conviction that the Fed is leaning toward another cut.

“The data is mixed… inflation is still sticky where it is,” said Sonali Basak, chief investment strategist at iCapital, on CNBC. “2026 is a wild card as it pertains to inflation… If [the labor market] tips over, then you’re in a pretty sticky spot next year.”

Even with all the Fed watching and Netflix drama, stocks are on track to end the week slightly higher:

• S&P 500: up about 0.4% week to date;
• Nasdaq: ahead roughly 1%;
• Dow: up around 0.5%.

The standout? Small caps. The Russell 2000 has gained more than 1% this week, outpacing the big indexes as investors dip back into riskier corners of the market.

In Thursday’s session, the Nasdaq logged its eighth gain in nine days, helped by a 3.4% jump in Meta and a 2.1% rise in Nvidia.

For now, the market tone is cautiously optimistic: modest gains, heavy focus on the Fed, and one eye firmly on that inflation print.