US stocks close week on high note

ISTANBUL

The New York Stock Exchange on Friday ended the week on a high note buoyed by expectations that next week the Fed may cut interest rates.

The Dow rose 0.22%, or 104.05 points, to close at 47,954.99.

The Nasdaq climbed 0.99%, or 72.99 points, to 23,578.13, while the S&P 500 added 0.19%, or 13.28 points, to 6,870.40.

The Volatility Index (VIX), also known as the “fear index,” fell 2.34% to 15.41.

Macroeconomic data was evaluated by investors ahead of the Fed’s monetary policy meeting next week, and stock markets followed a positive trend.

Data released in the country since the beginning of the week has provided mixed signals about the labor market, while the latest data provided clues about the inflation outlook.

According to US Commerce Department data, personal consumption expenditures in the country rose 0.3% in September, in line with expectations.

The core personal consumption expenditures price index, which the Fed considers an inflation indicator and excludes food and energy items from its calculations, rose 0.2% on a monthly basis and 2.8% on an annual basis in September.

The index, which rose in line with expectations on a monthly basis, was expected to rise 2.9% on an annual basis; the core personal consumption expenditures price index rose 0.2% monthly and 2.9% annually in August.

In addition, the consumer confidence rose to 53.3 in December, exceeding market expectations, and consumers’ short-term inflation expectations fell from 4.5% to 4.1% in December, reaching their lowest level since January.

Following these data, expectations that the Fed will cut interest rates at its final Federal Open Market Committee meeting of the year next Tuesday and Wednesday remain strong.

On the corporate side, Netflix announced that it has reached an agreement to acquire Warner Bros., including its film and television studios, HBO Max, and HBO, for $72 billion in equity value and $82.7 billion in total company value.

Following this news, Netflix shares fell 2.9%, while Warner Bros. Discovery shares rose 6.3%.

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