US Markets Edge Higher Before PCE Release as Netflix Drops on WBD Tie-Up

US equities moved higher on Friday as traders positioned themselves ahead of fresh inflation data and next week’s Federal Reserve meeting. By 9:32 a.m. in New York, the S&P 500 was up 0.2% and the Nasdaq 100 gained 0.5%, extending the week’s cautiously optimistic tone. With a December rate cut almost entirely baked into market pricing and investors expecting further easing to carry into 2026 the focus has shifted toward domestically oriented companies that tend to benefit most from steady U.S. economic growth, even as labor conditions soften.

‍

“We’re starting to see capital rotate into segments of the market most tied to a more stable U.S. growth backdrop,” said Dave Mazza, CEO of Roundhill Financial. “Small caps, in particular, look compelling because they react more directly to financing conditions and domestic demand. Even with weaker labor indicators, the outlook for Main Street earnings is improving under a friendlier rate environment.”

‍

Still, some strategists warn the year-end rebound in equities could lose momentum if the Fed strikes a tone that suggests caution about the underlying economy. Bank of America Corp.’s Michael Hartnett noted that investor optimism could be challenged if policymakers adopt a more dovish posture next week, as that might signal the Fed is more concerned about slowing economic activity than markets expect.

‍

Analysts echoed that sentiment. While they maintain that the overall backdrop for stocks remains constructive, they also observed that their U.S. market health checklist which strengthened quickly over the summer—has started to stall. That cooling trend could indicate that equity gains may slow in the near term.

‍

Despite these signals, money continues to flow into U.S. stocks. According to Bank of America’s research citing EPFR data, domestic equity funds attracted $700 million last week, marking the 12th straight week of inflows. Tech funds, however, broke from that trend, seeing $1.1 billion in redemptions their biggest outflow since June.

‍

Retail investor behavior in the options market is also shifting. While individual traders’ single-stock buying has remained relatively steady, their options trading volume has dropped significantly. Strategists say this could open the door for hedge funds to re-establish or expand short positions at attractive levels.

‍

Commodities delivered a mixed performance. Oil and iron ore slipped, while copper, silver, and gold all nudged higher. Bitcoin edged lower after failing to break above its recent trading range, extending a stretch of weakness tied in part to the outflows from BlackRock’s iShares Bitcoin Trust. The fund has posted more than $2.7 billion in redemptions over the past five weeks, its longest withdrawal streak since launching.

‍

In consumer stocks, Ulta Beauty Inc. rose after boosting its full-year guidance and reporting third-quarter results that topped expectations. The upbeat numbers suggest shoppers are becoming more comfortable spending on cosmetics and hair products. Victoria’s Secret also climbed after delivering better-than-expected revenue and raising its full-year outlook, signaling that the company’s turnaround plan is gaining traction.

‍

The tech sector saw several notable movers. Netflix Inc. announced a landmark deal to acquire Warner Bros. Discovery Inc., combining the world’s largest paid streaming platform with one of Hollywood’s most storied studios. Hewlett Packard Enterprise Co. slipped after issuing a sales outlook that failed to meet lofty expectations surrounding its AI server division. Meanwhile, cybersecurity firm Rubrik surged after raising its revenue outlook for 2026 and narrowing its forecast for adjusted per-share losses.

‍

Health-care stocks also posted gains. Cooper Cos. advanced after its projected 2026 adjusted earnings per share came in above consensus expectations. Humana rallied after Jefferies upgraded the health insurer from hold to buy, citing what it called an appealing risk-reward profile.

‍

Internationally, China’s AI chip industry delivered a standout moment. Moore Threads Technology Co., one of the nation’s most prominent artificial-intelligence semiconductor developers, soared 425% in its trading debut in Shanghai. The company raised 8 billion yuan ($1.13 billion), marking the biggest first-day jump for a major IPO since China’s 2019 listing reforms.

‍