US Stocks Open Slightly Higher on Friday as Market Awaits Key Inflation Data

US stocks opened modestly higher on Friday evening Beijing time, with traders awaiting inflation data that could further influence the Federal Reserve's interest rate decisions. Netflix and Warner Bros. Discovery reached a $72 billion acquisition deal.

The Dow Jones Industrial Average rose 72.64 points, or 0.15%, to 47,923.58. The Nasdaq Composite gained 64.814 points, or 0.28%, to 23,569.95, while the S&P 500 climbed 13.11 points, or 0.19%, to 6,870.23.

A major M&A announcement took center stage. Streaming giant Netflix confirmed an agreement to acquire Warner Bros. Discovery's film and streaming assets for $72 billion, with the transaction expected to close within 12-18 months.

Traders are closely monitoring economic indicators, including the delayed November nonfarm payrolls report scheduled for release after the Fed's December 10 meeting.

Friday will see multiple economic data releases. The Commerce Department will publish delayed September consumer spending and income figures, along with the Fed's preferred inflation gauge—the Personal Consumption Expenditures (PCE) index. The PCE report, postponed due to the government shutdown, will provide final inflation insights before Wednesday's Fed rate decision.

Additionally, the University of Michigan will release its December consumer survey, offering insights into sentiment and inflation expectations.

On Thursday, the S&P 500 and Nasdaq Composite edged higher, while the Dow closed slightly lower. The tech-heavy Nasdaq posted gains in eight of nine sessions, buoyed by Meta's 3.4% rise and Nvidia's 2.1% advance.

Earlier Thursday, Challenger, Gray & Christmas reported November corporate layoffs pushed annual job cuts past 1 million, citing restructuring, AI, and tariffs as contributing factors.

Weekly jobless claims fell to their lowest since September 2022, though this didn't significantly alter market expectations for Fed policy.

Most investors anticipate labor market softening will prompt a 25-basis-point rate cut next week. CME's FedWatch Tool shows traders pricing in an 87% chance of a Wednesday rate reduction—substantially higher than weeks prior. The federal funds rate target remains 3.75%-4%, with money market pressures keeping trading near the range's upper bound.

iCapital's Chief Investment Strategist Sonali Basak noted: "We're seeing mixed data with conflicting signals. Inflation remains sticky, and 2026's trajectory is uncertain. Meanwhile, the labor market maintains its 'low-hire, low-fire' equilibrium—a balance that, if disrupted, could create challenges next year."

For the week, major indexes posted marginal gains: the S&P 500 rose 0.1%, while the Nasdaq and Dow advanced nearly 0.6% and 0.3% respectively.