S&P 500 rises toward record as Fed-favored inflation gauge cools

Stock market today: S&P 500, Nasdaq, Dow rise as Fed-favored PCE inflation data cools
=====================================================================================

[Rian Howlett](/author/rian-howlett) , [Karen Friar](/author/karen-friar)  and [Laura Bratton](/author/laura-bratton)

Updated Fri, December 5, 2025 at 8:18 AM MST 1 min read

[^GSPC

+0.49%](/quote/%5EGSPC/ "^GSPC")

[NFLX

-0.09%](/quote/NFLX/ "NFLX")

[^DJI

+0.45%](/quote/%5EDJI/ "^DJI")

[WBD

+3.12%](/quote/WBD/ "WBD")

[^IXIC

+0.63%](/quote/%5EIXIC/ "^IXIC")

US stocks moved higher on Friday as Wall Street digested a cooling in the Federal Reserve's preferred inflation gauge, increasing the odds that the central bank will cut rates next week.

The S&P 500 ([^GSPC](https://finance.yahoo.com/quote/%5EGSPC)) rose 0.5%, suddenly on the cusp of a fresh record. The Nasdaq Composite ([^IXIC](https://finance.yahoo.com/quote/%5EIXIC)) gained 0.7%, eyeing its ninth positive close in 10 sessions. The Dow Jones Industrial Average ([^DJI](https://finance.yahoo.com/quote/%5EDJI)) gained around 0.5%, following a [mixed Thursday session](https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-end-little-changed-as-wall-streets-fed-rate-cut-conviction-runs-high-210046639.html) for the gauges.

Dow Jones Industrial Average (^DJI)
===================================

48,064.98

+214.04

+(0.45%)

[Advanced Chart](/chart/%5EDJI)

Investors continue to bet heavily on a quarter-point interest rate cut from the central bank next Wednesday. Traders are pricing in 87% odds of a move lower, compared with 62% a month ago, according to [CME FedWatch](https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html).

On Friday, a delayed reading of the PCE price index showed inflation rose about as expected in September. The "core" PCE index — the Fed's favored price gauge — cooled slightly, rising 2.8% on an annual basis. Meanwhile, US consumer confidence rose for the first time in five months as respondents' inflation expectations improved.

The jobs market, meanwhile, has presented more of a mixed bag of data this week. A Challenger report on Thursday showed US companies [cut 71,000 jobs](https://finance.yahoo.com/news/job-market-mixed-bag-jobless-claims-drop-to-3-year-low-but-employers-shed-71000-jobs-in-worst-november-since-2022-124809562.html) last month, the worst November print since 2022. Yet new [weekly jobless claims](https://finance.yahoo.com/news/a-k-shaped-economy-has-investors-on-edge-bofa-says-it-may-hold-up-110013215.html) fell to their lowest since September 2022, reinforcing the picture of a labor market cooling gradually rather than rapidly.

Meanwhile, news landed that Netflix ([NFLX](https://finance.yahoo.com/quote/NFLX)) will [buy Warner Bros. Discovery's](https://finance.yahoo.com/news/netflix-to-acquire-warner-bros-in-72-billion-deal-125537621.html) ([WBD](https://finance.yahoo.com/quote/WBD)) studios and its streaming unit for $72 billion, following a weeks-long bidding war. Netflix stock ticked down, while WBD shares moved 3% higher.

In [earnings](https://finance.yahoo.com/news/live/earnings-live-ulta-stock-pops-hpe-falls-with-guidance-in-focus-uipath-stock-skyrockets-213508470.html), Hewlett Packard Enterprise ([HPE](https://finance.yahoo.com/quote/HPE)) stock slid over 3% after the server maker's quarterly [sales outlook missed](https://finance.yahoo.com/news/hpe-falls-outlook-disappoints-slower-091244116.html) high AI-fueled expectations.