US close: S&P 500 inches closer to record high after PCE data

5th Dec 2025 23:59

(Sharecast News) - US stocks finished with mild gains on Friday but ended the week firmly higher as interest rate cut speculation continues to prop up equity markets, with the S&P 500 settling just inches below all-time highs.

"The late November sell-off woes are clearly behind us with stock indices ending their second consecutive week higher amid Fed rate cut hopes," said Axel Rudolph, senior technical analyst at IG.

The S&P 500 rose 0.2% to 6,870.40 after four straight days in the green, finishing at its highest level since 29 October when it reached 6,890.59 (which was just 0.30 points shy of the 6,890.89 official all-time closing high set the previous session). The Dow also gained 0.2%, while the Nasdaq increased 0.3%, with both reaching their highest in four weeks.

For the week, the S&P 500 and Dow rose 0.6%, while the Nasdaq rose 1.4%.

Fuelling rate-cut hopes was the release of September's long-delayed personal consumption expenditures price index on Friday, which showed that the annual change in core PCE - the Fed's preferred inflation gauge which excludes volatile food and energy prices - unexpectedly eased to 2.8% from 2.9% in August.

"The committee's been deeply divided about the balance of risks, with elevated inflation arguing for caution and the downside risks to the labor market arguing for cuts," said analysts at Oxford Economics in a note looking ahead to the FOMC meeting on 9-10 December.

"The available data we do have on the labor market don't provide enough confidence that conditions are stabilising. Therefore, the path of fewest regrets for most of the committee is likely to be to vote for another 25bp rate cut."

Also helping the mood was data from the University of Michigan, which showed that US consumer sentiment improved slightly in December. The monthly confidence index rose to 53.3 from 51 in November, topping the 52 consensus forecast.

A blockbuster deal in the entertainment sector also lifted spirits after Netflix agreed to buy Warner Bros. Discovery for $82bn, beating Paramount Skydance and Comcast to the punch.

"This acquisition brings together two pioneering entertainment businesses, combining Netflix's innovation, global reach and best-in-class streaming service with Warner Bros.' century-long legacy of world-class storytelling," the two companies said in a statement.

However, while WBD gained 6% on the news, Netflix slipped 3% while Paramount Skydance dropped 10%.

In other corporate news, Victoria's Secret traded 18% higher after it reported third-quarter sales that came in ahead of expectations, leading the lingerie retailer to hike its full-year outlook.

Other high risers included cloud data manager Rubrik after topping estimates with its third-quarter results, posting an unexpected profit as revenues comfortably beat expectations, and Ulta Beauty after the cosmetics firm upped its annual guidance.

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $260.65 5.30%

Intel Corp. (INTC) $41.41 2.25%

Goldman Sachs Group Inc. (GS) $853.78 2.00%

Visa Inc. (V) $331.69 1.27%

Verizon Communications Inc. (VZ) $41.79 1.04%

Home Depot Inc. (HD) $353.41 0.98%

McDonald's Corp. (MCD) $311.30 0.87%

Caterpillar Inc. (CAT) $602.05 0.67%

Microsoft Corp. (MSFT) $483.16 0.48%

Dow Chemical Co. (DOW) $23.06 0.39%

Dow Jones - Fallers

Amgen Inc. (AMGN) $329.89 -3.02%

Chevron Corp. (CVX) $151.10 -1.48%

Procter & Gamble Co. (PG) $143.52 -1.31%

Merck & Co. Inc. (MRK) $99.99 -1.16%

3M Co. (MMM) $167.82 -1.06%

Unitedhealth Group Inc. (UNH) $330.55 -0.77%

Travelers Company Inc. (TRV) $281.24 -0.69%

Apple Inc. (AAPL) $280.70 -0.68%

Coca-Cola Co. (KO) $70.04 -0.64%

JP Morgan Chase & Co. (JPM) $315.73 -0.34%

S&P 500 - Risers

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $601.50 12.65%

Southwest Airlines Co. (LUV) $37.96 5.70%

Dollar Tree Inc (DLTR) $122.44 5.67%

Dollar General Corp (DG) $132.20 5.65%

Adobe Systems Inc. (ADBE) $346.26 5.33%

Salesforce.Com Inc. (CRM) $260.65 5.30%

Albemarle Corp. (ALB) $126.84 5.08%

Seagate Technology Plc (STX) $278.79 4.95%

Alaska Air Group Inc. (ALK) $49.81 4.92%

Western Digital Corp. (WDC) $168.89 4.90%

S&P 500 - Fallers

CenturyLink Inc. (LUMN) $8.34 -5.92%

Whirlpool Corp. (WHR) $76.52 -4.81%

NRG Energy Inc. (NRG) $164.53 -3.76%

Akamai Technologies Inc. (AKAM) $83.50 -3.59%

Fluor Corp. (FLR) $44.24 -3.28%

Amgen Inc. (AMGN) $329.89 -3.02%

CF Industries Holdings Inc. (CF) $78.10 -2.93%

Netflix Inc. (NFLX) $100.24 -2.89%

General Electric Co. (GE) $283.44 -2.71%

Sl Green Realty Corp. (SLG) $42.52 -2.52%

Nasdaq 100 - Risers

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $601.50 12.65%

Baidu Inc. (BIDU) $125.66 5.85%

Dollar Tree Inc (DLTR) $122.44 5.67%

Adobe Systems Inc. (ADBE) $346.26 5.33%

Seagate Technology Plc (STX) $278.79 4.95%

Western Digital Corp. (WDC) $168.89 4.90%

Micron Technology Inc. (MU) $237.22 4.66%

Booking Holdings Inc. (BKNG) $5,197.04 3.38%

American Airlines Group (AAL) $14.81 3.28%

Qvc Group Inc Series A (QVCGA) $9.26 3.08%

Nasdaq 100 - Fallers

Mercadolibre Inc. (MELI) $2,139.56 -3.42%

Amgen Inc. (AMGN) $329.89 -3.02%

Netflix Inc. (NFLX) $100.24 -2.89%

Mondelez International Inc. (MDLZ) $54.90 -1.60%

Check Point Software Technologies Ltd. (CHKP) $193.06 -1.41%

Vodafone Group Plc ADS (VOD) $12.47 -1.34%

Marriott International - Class A (MAR) $292.59 -1.15%

Gilead Sciences Inc. (GILD) $122.62 -1.14%

Kraft Heinz Co. (KHC) $24.34 -1.02%

Asml Holdings N.V. (ASML) $1,099.47 -0.96%