US stocks closed higher on Friday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all gaining. This positive trend was driven by new data showing a cooling in the Federal Reserves preferred inflation measure, increasing hopes for an imminent interest rate cut. The S&P 500 rose by 0.5%, nearing a new record high, while the Nasdaq gained 0.7%.The Personal Consumption Expenditures (PCE) price index, a key inflation gauge, remained steady in September, rising by 0.3% from the previous month and matching economists expectations. The core PCE index, which excludes food and energy prices, also rose by 0.2%.The job market presented a mixed picture, with US companies cutting 71,000 jobs in November, the worst month since 2022. However, new weekly jobless claims fell to their lowest point since September 2022, indicating a gradual cooling of the labor market.Netflix announced its intention to acquire Warner Bros. Discoverys studios and streaming unit for $72 billion, following a bidding war. Netflix stock dipped slightly after the announcement, while Warner Bros. Discovery shares rose by 3%. Hewlett Packard Enterprise stock fell over 3% after its quarterly sales outlook disappointed, particularly in the artificial intelligence sector.Investors are eagerly anticipating a quarter-point interest rate cut from the central bank next Wednesday, with traders now pricing in an 87% chance of such a move, up from 62% just one month ago.

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