Stock Market Today - Netflix’s $83B Deal and Cooling Inflation Power Wall Street Rally — S&P 500 Nears All-Time High

Stock Market Today - Wall Street Rises As Investors Await Fed Decision And Massive Netflix-Warner Deal Shakes Markets

U.S. equities moved higher Friday as traders positioned ahead of next week’s Federal Reserve meeting and digested a wave of corporate developments led by the $83 billion Netflix (NASDAQ:NFLX) acquisition of Warner Bros. Discovery (NASDAQ:WBD). The S&P 500 (^GSPC) advanced 0.45% to 6,887.97, the Dow Jones Industrial Average (^DJI) gained 0.52% to 48,098.40, and the Nasdaq Composite (^IXIC) climbed 0.49% to 23,620.60, extending the market’s four-day winning streak. The core PCE inflation rate—the Fed’s key measure—rose 2.8%, slightly under estimates, reinforcing bets on a 25 bps rate cut next week. Treasury yields steadied, with the 10-year (^TNX) at 4.11%, while the VIX volatility index remained at 15.8, underscoring calm investor sentiment.

Netflix (NFLX) Buys Warner Bros. Discovery (WBD) In Landmark $83 Billion Media Deal

The entertainment industry was jolted by confirmation that Netflix will acquire Warner Bros. Discovery for $83 billion, including $72 billion in equity and $11 billion in debt assumption. The merger hands Netflix ownership of Warner’s iconic franchises—Game of Thrones, DC Comics, Harry Potter, and Friends—alongside control of HBO Max. WBD shares jumped 3.5% to $25.20, their strongest level since 2022, while NFLX dropped 1.7% to $103.07 as investors weighed short-term cost impacts. The deal will separate Discovery Global—which includes CNN, TNT, and TBS—into a standalone public company. White House officials expressed “heavy skepticism,” indicating potential antitrust scrutiny that could extend closing beyond 2026.

Earnings Leaders: Victoria’s Secret (VSCO), Ulta Beauty (ULTA), Cooper Companies (COO)

Victoria’s Secret (NYSE:VSCO) soared 17.1% to $48.66 after boosting FY2025 forecasts. The company now expects revenue between $6.45–6.48 billion and EPS of $2.40–$2.65, well above earlier guidance. Q3 revenue rose 9% YoY to $1.47 billion, beating estimates, with a narrower $0.46 per-share loss. Ulta Beauty (NASDAQ:ULTA) surged 11.4% to $594.74 after Q3 revenue hit $2.9 billion, ahead of expectations, while same-store sales grew 6.3% and EPS reached $5.14 versus $4.60 forecasted. The retailer lifted FY2025 guidance to $12.3 billion in sales and $25.20–$25.50 in EPS, reflecting resilient discretionary spending. Cooper Companies (NASDAQ:COO) climbed 7.6% to $82.91, citing strong quarterly earnings and a long-term $2.2 billion free cash flow target as demand for medical devices and vision-care products improved.

Lagging Stocks: SoFi (SOFI) And Hewlett Packard Enterprise (HPE) Slide On Weak Guidance

SoFi Technologies (NASDAQ:SOFI) declined 7% after announcing a $1.5 billion share offering, triggering dilution concerns. Hewlett Packard Enterprise (NYSE:HPE) dropped 8% after issuing Q1 revenue guidance of $9–$9.4 billion, short of analyst estimates at $9.88 billion. CEO Antonio Neri pointed to delays in AI-related contracts and U.S. government shutdown disruptions. Despite this, deferred AI server orders are expected to roll into early 2026, keeping sentiment cautiously optimistic on long-term growth.

Tech Momentum: Meta (META), Nvidia (NVDA), Google (GOOGL), Amazon (AMZN)

Tech leaders continued to dominate market direction. Meta Platforms (NASDAQ:META) gained 5% after reports that management will reduce Metaverse division spending by up to 30%, reinforcing its shift toward profitability. Nvidia (NASDAQ:NVDA) advanced 2.1%, extending its rebound as AI hardware demand held firm. Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) unveiled proprietary AI chips—Google’s TPU and Amazon’s Tranium3—targeting efficiency gains in training workloads but not directly rivaling Nvidia’s GPUs. Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) traded sideways, keeping the Nasdaq Composite within 2% of record highs.

Fixed Income And Commodities: Gold And Silver Extend Gains As Yields Stabilize

The 10-year Treasury yield (^TNX) hovered at 4.112%, while the 30-year (^TYX) rose to 4.78%, its highest since September. Commodity markets reflected growing rate-cut confidence: Gold (XAU/USD) advanced 0.75% to $4,274.80, Silver (SI=F) settled near $57.02, and Copper extended gains on tariff speculation. The Dollar Index (DXY) softened to 98.92 (-0.07%), while Crude Oil (CL=F) edged 0.5% higher to $59.97, supported by inventory drawdowns.

Crypto Sector: Bitcoin (BTC-USD) Faces Pressure As ETF Outflows Persist

Bitcoin (BTC-USD) slipped 2.4% to $90,297, under pressure from institutional outflows. BlackRock’s (NYSE:BLK) iShares Bitcoin Trust (IBIT) logged $2.7 billion in redemptions over five weeks—the longest stretch since its 2024 debut. Despite a recent pullback, BTC remains up 70% year-to-date, supported by easing inflation and expectations of renewed ETF inflows in early 2026.

Industrials And Airlines: Southwest (LUV) Recovers, Broadcom (AVGO) Gains

Southwest Airlines (NYSE:LUV) climbed 4.5% to $37.43, even after cutting FY2025 EBIT guidance to $500 million from $600–800 million, citing temporary demand weakness and higher fuel costs during the government shutdown. Broadcom (NASDAQ:AVGO) held steady near all-time highs as it launched new optical networking chips designed to compete directly with Nvidia in high-speed AI connectivity—a move that has helped AVGO outperform the Philadelphia Semiconductor Index (SOX) by 12% year-to-date.

Global Market Overview: Europe Gains, Japan Pulls Back, Dollar Weakens

European markets closed higher, with the STOXX 600 (+0.5%) and FTSE 100 (+0.4%) lifted by luxury and technology shares. The Nikkei 225 (-0.3%) dipped as rising expectations of a Bank of Japan rate hike pressured exporters. The WSJ Dollar Index is on track for its steepest two-week drop since July, reflecting growing belief in U.S. rate cuts.

Market Outlook: Fed Decision To Define Near-Term Trend

With major indices approaching record territory and corporate earnings outpacing expectations, sentiment remains constructive. Traders overwhelmingly anticipate a 0.25% Fed rate cut on Dec. 10, but Bank of America’s Michael Hartnett warns that an overly dovish message could trigger profit-taking in long-duration assets. Nonetheless, momentum across AI, discretionary retail, and communication services supports a bullish short-term outlook.
Verdict: Buy bias maintained across S&P 500, Nasdaq, and Dow Jones as inflation moderates and earnings growth broadens. A sustained breakout above S&P 6,900 confirms upward continuation into year-end.

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