Economic Signals Boost US Stocks Amidst Anticipated Fed Rate Cut

U.S. stocks showed modest gains following strong economic data and expectations of a Federal Reserve interest rate cut. This shift comes as data shows consumer spending up and inflation indicators stable, boosting market sentiments. Warner Bros Discovery shares surged due to a $72 billion Netflix acquisition.

U.S. stocks rose slightly on Friday as recent economic data fueled predictions for a potential Federal Reserve interest rate cut next week. Following the prolonged government shutdown, investors have been interpreting delayed economic reports as backlogs clear.

The Commerce Department reported a 0.3% rise in September consumer spending, consistent with earlier forecasts. The PCE Price Index also increased by 0.3%, meeting expectations. A separate University of Michigan survey indicated improved consumer sentiment.

Stocks such as Warner Bros Discovery soared 5.6% after Netflix's acquisition of their studios for $72 billion. Meanwhile, the S&P 500 healthcare index fell slightly. Overall, the markets anticipate growth ahead of the expected rate cut.