US markets ended Friday slightly higher as investors digested key inflation data ahead of next week’s Federal Reserve interest rate decision. The S&P 500 rose 0.19% to 6,870.40, its fourth straight gain and ninth positive session in 10. The index now sits less than 1% below its intraday record. The Nasdaq Composite added 0.31% to close at 23,578.13, while the Dow advanced 0.22% to finish at 47,954.99.
For the week, the S&P 500 rose 0.3%. The Nasdaq gained nearly 1%, and the Dow added 0.5%.
Inflation readings ease as labour concerns rise
Friday’s economic releases offered a clearer picture of the inflation backdrop before Wednesday’s Fed meeting. Core PCE, the central bank’s preferred inflation gauge, rose 2.8% over the year to September, slightly below expectations. Monthly readings matched forecasts, as did headline PCE.
Consumer sentiment data from the University of Michigan came in stronger than anticipated, with near- and long-term inflation views edging higher.
With inflation continuing to moderate, investors remain focused on labour market softness. Recent employment data has pointed to weakening conditions, raising expectations that the Fed will cut rates next week.
Market pricing now assigns an 87% probability of a quarter-point cut, according to the CME FedWatch tool. The fed funds target range remains at 3.75% to 4%.
Netflix deal sends streaming stocks swinging
Netflix shares fluctuated during Friday’s session after the company agreed to acquire film and streaming assets from Warner Bros Discovery in a US$72bn deal expected to complete within 12 to 18 months. Netflix ended the day nearly 3% lower, while WBD shares rose more than 6%.
The stock pared some losses after a senior US official signalled strong scepticism from the Trump administration regarding the transaction.
ASX slips as investors await RBA decision amid global central-bank week
The Australian sharemarket has slipped on Monday as investors await the Reserve Bank of Australia’s rate decision. The S&P/ASX 200 was down 0.3 per cent at midday, with most sectors weaker. The pause came despite a modest gain on Wall Street, where the S&P 500 edged higher after US inflation data met expectations. The RBA is one of four major central banks meeting this week and is expected to hold the cash rate steady on Tuesday, though governor Michele Bullock is anticipated to strike a firmer tone on inflation. Bond markets are pricing in up to two rate hikes next year. The US Federal Reserve is tipped to cut rates this week, while the Bank of Canada and the Swiss National Bank are also preparing policy updates.
On the ASX, trading was subdued. Gold miners weakened after a pullback in the metal’s price, with Newmont and Northern Star both falling more than 2 per cent. In contrast, lithium stocks outperformed, with Liontown jumping 8.3 per cent and Pilbara Minerals up 4.3 per cent as the sector continued to benefit from an upbeat UBS upgrade issued last week.
