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U.S. Stocks Nudge Higher on In‑Line PCE as Netflix Moves to Buy Warner Bros. Discovery Assets

FOMC divisions plus sticky‑inflation worries tempered the optimism.

Overview

  • Core PCE rose 0.2% month over month and 2.8% year over year in September, with headline PCE up 0.3%, matching forecasts.
  • Futures implied roughly an 87% chance of a quarter‑point Fed rate cut next week as the S&P 500 finished just shy of its record close.
  • Technology and consumer discretionary led gains, while utilities, energy and health care lagged as Treasury yields held near recent levels.
  • Netflix agreed to acquire Warner Bros. Discovery’s studio and streaming businesses in a cash‑and‑stock deal valued at about $72 billion in equity and $82.7 billion in enterprise value, with Netflix shares lower and WBD higher.
  • London’s FTSE 100 fell after Bank of America cut ratings on BP and Shell, dragging the energy‑heavy index below peers.