Markets Rally as Inflation Eases, Government Shutdown Looms

Stocks rebound on softer inflation data despite uncertainty over federal spending and mixed corporate developments.

The Dow Jones, S&P 500, and Nasdaq all posted gains on Friday following a report showing November inflation slowed more than expected.
The Federal Reserve's preferred inflation gauge, the core PCE index, rose 0.1% month-over-month, below economists' expectations, but inflation remains above the central bank's 2% target.
A potential government shutdown looms after the House rejected a Trump-backed spending bill, with lawmakers scrambling to find a resolution.
Novo Nordisk shares plunged over 20% after its obesity drug CagriSema underperformed in a late-stage clinical trial, wiping out $125 billion in market value.
Chip stocks faced pressure after President-elect Trump threatened tariffs on European goods unless the EU increases purchases of U.S. oil and gas.