Wall Street's Uptrend Amid Inflation Report and Fed Rate Speculations

Wall Street's indexes rose as the markets reacted to a delayed inflation report and speculated on the Federal Reserve's policy. Core prices increased slightly below expectations, and consumer sentiment improved. The Fed's upcoming meeting is contentious, with an anticipated rate cut amidst stable labor market indicators.

Wall Street's main indexes edged higher on Friday as investors digested a long-delayed inflation report and recalibrated expectations for the Federal Reserve's policy path.

The latest Personal Consumption Expenditures report indicated that U.S. consumer spending rose in line with forecasts, but core prices increased slightly below expectations, marking a 2.8% year-on-year rise. This release, the first since a government shutdown halted statistics, provided a fresh economic pulse-check ahead of a potentially contentious Fed meeting.

Meanwhile, the University of Michigan's survey showed an improvement in consumer sentiment for December, with inflation expectations lowering slightly. Fed Funds imply an 87% chance of a 25-basis-point rate cut at the upcoming meeting, although opinions remain divided. At 10:07 a.m. ET, major indexes such as the Dow Jones, S&P 500, and Nasdaq Composite saw modest gains. The stock market also saw notable movements, including Warner Bros. Discovery shares rising after a major deal and Hewlett Packard Enterprise shares falling on revenue forecasts.

(With inputs from agencies.)