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Markets Near Records on Fed Cut Bets as Netflix Pursues $83 Billion Warner Bros. Discovery Deal

Cooling PCE inflation with jobless claims at a two-year low strengthens the case for an initial rate cut.

Overview

  • Futures markets price roughly an 87–90% chance of a 25 basis-point Federal Reserve cut at next week’s meeting.
  • The S&P 500, Nasdaq, and Dow posted weekly gains and sit within reach of all-time highs as small caps outperform.
  • The Fed’s preferred inflation gauge rose 2.9% year over year with core PCE at 2.8%, reinforcing a pivot toward easier policy.
  • Netflix announced a $83 billion purchase of Warner Bros. Discovery’s film and streaming assets, a deal pending regulatory approval after a competitive bidding process.
  • A weaker dollar lifted commodities such as copper, while signs of Bank of Japan tightening pushed Japanese yields higher and the yen stronger.