Wall Street Nears Record as Market Awaits Fed's Next Move

The US stock market inches close to its all-time high as Wall Street concludes a quiet week. Investors are anticipating a potential interest rate cut by the Federal Reserve, which could bolster the market. Key movements include Netflix's acquisition plan and unexpected earnings results from Ulta Beauty and Victoria's Secret.

The US stock market is on the verge of reaching its all-time high as Wall Street winds down a relatively tranquil week. The S&P 500 increased by 0.3%, coming within 0.2% of its record. The Dow Jones Industrial Average rose 46 points—0.1%—while the Nasdaq composite climbed 0.4%. Meanwhile, the Russell 2000 index of small stocks retreated 0.2% from its record set the previous day.

Netflix announced plans to acquire Warner Bros., which saw Netflix shares dip by 2.1%. The deal, valued at USD 72 billion, brings under Netflix's wing the creators of HBO Max, "Casablanca," and "Harry Potter." Warner Bros. Discovery's stocks enjoyed a 2.6% lift. In retail, Ulta Beauty soared by 11% following a stronger-than-anticipated profit and revenue report for the latest quarter, driven by e-commerce growth. Ulta increased its revenue forecast for the entire year.

The broader US stock market has remained notably quieter this past week, a relief from prior volatile periods fueled by concerns over dollar influx into AI technology and Federal Reserve interest rate moves. Investors largely expect a Fed interest rate cut next week, potentially its third this year, which could stimulate the US job market. While lower rates can boost investments and economic activity, they also risk exacerbating inflation, which remains above the Fed's 2% target.

(With inputs from agencies.)