Wall Street Surges Near Record High

On Friday, the U.S. stock market edged closer to its all-time high, reflecting modest gains in major indices. The S&P 500 rose by 0.2%, finishing just 0.3% shy of its record closing level established last October. Throughout the day, it had briefly surpassed that mark before ultimately paring its gains.

Market Performance

The key stock indices showed positive movement:

• S&P 500: Increased by 13.28 points, closing at 6,870.40.
• Dow Jones Industrial Average: Gained 104.05 points, finishing at 47,954.99.
• Nasdaq Composite: Added 72.99 points, concluding at 23,578.13.

Key Drivers

Notable market movers included:

• Ulta Beauty: Up 12.7% after exceeding profit and revenue expectations for the recent quarter.
• Victoria’s Secret & Co: Stock surged 18% following a smaller-than-expected loss and an increased sales forecast.
• Warner Bros. Discovery: Rose 6.3% amid news of Netflix’s potential acquisition for $72 billion.

Conversely, some companies faced declines:

• SoFi Technologies: Dropped 6.1% as it announced plans to raise $1.5 billion through stock sales at $27.50 per share.
• Paramount Skydance: Fell 9.8% amid acquisition speculations surrounding Warner Bros.
• Netflix: Decreased by 2.9% as the market digested the acquisition news.

Economic Context

Investors remained cautious due to ongoing concerns regarding Federal Reserve policy, particularly regarding interest rates. The expectation is that the Fed may cut its main interest rate next week to support the slowing job market, which could be the third cut this year.

Current economic indicators include:

• September’s underlying inflation measure at 2.8%, aligning with economists’ predictions.
• Consumer inflation expectations for the coming year reduced to 4.1%, down from 4.5% last month, marking the lowest forecast since January.

However, rising inflation expectations can perpetuate economic challenges.

Global Markets

International stock markets exhibited mixed results:

• Germany’s DAX: Rose 0.6%.
• South Korea’s Kospi: Jumped 1.8%.
• Tokyo’s Nikkei 225: Fell 1.1% following a significant drop in household spending.

In bond markets, Treasury yields increased, with the yield on the 10-year Treasury climbing to 4.13% from 4.11% late Thursday. This environment reflects a complex interplay of economic indicators and market dynamics as investors stay vigilant regarding upcoming decisions by the Federal Reserve.