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Wall Street closed slightly higher on Friday, pulled up by tech and discretionary stocks. A slew of delayed economic data continued to raise expectations that the Fed would cut rates next week. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2%, or 104.05 points, to close at 47,954.99. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in the positive.
The tech-heavy Nasdaq Composite added 72.99 points, or 0.3%, to close at 23,578.13.
The S&P 500 gained 13.28 points, or 0.2%, to close at 6,870.4. Eight of the 11 broad sectors of the benchmark index closed in the red. The Communication Services Select Sector SPDR (XLC), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 1%, 0.5% and 0.4% respectively, while the Utilities Select Sector SPDR (XLU) receded 1%. For the S&P 500, it was a fourth straight winning session.
The fear gauge CBOE Volatility Index (VIX) decreased 2.3% to 15.41. A total of 16.2 billion shares were traded on Friday, lower than the last 20-session average of 17.7 billion. Decliners outnumbered advancers by a 1.01-to-1 ratio on the NYSE and by a 1.22-to-1 ratio on the Nasdaq.
September’s Core PCE Stokes Rate-Cut Optimism
Wall Street closed higher on Friday as optimism about potential rate cuts by the Fed reignited, fueled in large part by fresh economic data that seemed to strengthen the case for easing. At the center of the rally was the core reading of the Personal Consumption Expenditures Price Index (core PCE) for September, the Fed’s preferred gauge of inflation, which rose 2.8% year over year. This movement of the core PCE was tangibly lower than what many had feared and reinforced the view that price pressures might be easing, giving the Fed more room to consider cutting rates.
Beyond inflation, other economic signals added to the shift in sentiment. Labor market data, including recent private sector payroll reports, painted a picture of gradual cooling. This suggests that the economy might be losing some momentum. With wage growth moderating and demand pressures easing, investors grew increasingly confident that the Fed would deliver a rate cut at its next meeting.
This combination of benign inflation, a gradually cooling labor market and elevated odds (nearly 87.2% per CME’s FedWatch tool) of a 25-basis-point rate cut, pushed markets higher as investors anticipated easier monetary policy. This tends to support equities by lowering borrowing costs and boosting future earnings prospects. Tech and discretionary stocks made the most of the gains.
Healthcare Stocks Dip After Hepatitis B Policy Shift
Healthcare stocks slid on Friday after a U.S. vaccine advisory panel voted to end the long-standing policy recommending that all infants receive the hepatitis B vaccine at birth. The new guidance restricts the birth dose to newborns whose mothers test positive for hepatitis B or whose status is unknown, leaving vaccination for others to doctors’ and parents’ discretion. The abrupt shift has rattled markets, reducing demand certainty for vaccine makers and spurring sell-offs in companies linked to childhood immunization.
Weekly Roundup
Last week, the S&P 500 rose 0.31 %, the Nasdaq Composite climbed 0.91 % and the Dow Jones Industrial Average gained 0.5 %, marking a second straight weekly advance. Gains were driven by renewed hopes that the Fed will cut interest rates soon after recent economic data showed consumer spending firming and inflation remaining tame. Softer employment indicators and improving consumer sentiment helped reinforce expectations of easier policy, encouraging investors to bid up rate-sensitive and growth stocks ahead of the Fed’s upcoming meeting.
Economic Data
Per the U.S. Bureau of Economic Analysis, the PCE price index for September increased 0.3%, decreasing from the 0.4% increase reported in August. Excluding food and energy, the core PCE price index increased 0.2%, remaining at the same level of rise reported in August. Personal income increased $94.5 billion (0.4%) in September, disposable personal income (DPI) increased $75.9 billion (0.3%) and the personal savings rate was at 4.7%.
Per a Fed report, consumer credit increased by $9.2 billion in October. The number for September was revised down to a rise of $11 billion from the previously reported $13.1 billion.
Per the U.S. Census Bureau, factory orders for September increased 0.2% after jumping 1.3% in August.
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Stock Market News for Dec 8, 2025
Wall Street closed slightly higher on Friday, pulled up by tech and discretionary stocks. A slew of delayed economic data continued to raise expectations that the Fed would cut rates next week. All three benchmark indexes finished in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2%, or 104.05 points, to close at 47,954.99. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in the positive.
The tech-heavy Nasdaq Composite added 72.99 points, or 0.3%, to close at 23,578.13.
The S&P 500 gained 13.28 points, or 0.2%, to close at 6,870.4. Eight of the 11 broad sectors of the benchmark index closed in the red. The Communication Services Select Sector SPDR (XLC), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 1%, 0.5% and 0.4% respectively, while the Utilities Select Sector SPDR (XLU) receded 1%. For the S&P 500, it was a fourth straight winning session.
The fear gauge CBOE Volatility Index (VIX) decreased 2.3% to 15.41. A total of 16.2 billion shares were traded on Friday, lower than the last 20-session average of 17.7 billion. Decliners outnumbered advancers by a 1.01-to-1 ratio on the NYSE and by a 1.22-to-1 ratio on the Nasdaq.
September’s Core PCE Stokes Rate-Cut Optimism
Wall Street closed higher on Friday as optimism about potential rate cuts by the Fed reignited, fueled in large part by fresh economic data that seemed to strengthen the case for easing. At the center of the rally was the core reading of the Personal Consumption Expenditures Price Index (core PCE) for September, the Fed’s preferred gauge of inflation, which rose 2.8% year over year. This movement of the core PCE was tangibly lower than what many had feared and reinforced the view that price pressures might be easing, giving the Fed more room to consider cutting rates.
Beyond inflation, other economic signals added to the shift in sentiment. Labor market data, including recent private sector payroll reports, painted a picture of gradual cooling. This suggests that the economy might be losing some momentum. With wage growth moderating and demand pressures easing, investors grew increasingly confident that the Fed would deliver a rate cut at its next meeting.
This combination of benign inflation, a gradually cooling labor market and elevated odds (nearly 87.2% per CME’s FedWatch tool) of a 25-basis-point rate cut, pushed markets higher as investors anticipated easier monetary policy. This tends to support equities by lowering borrowing costs and boosting future earnings prospects. Tech and discretionary stocks made the most of the gains.
Consequently, shares of Palantir Technologies Inc. (PLTR - Free Report) and Broadcom Inc. (AVGO - Free Report) jumped 2.2% and 2.4%, respectively. PLTR carries a Zacks Rank #2 (Buy), while AVGO has a #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Healthcare Stocks Dip After Hepatitis B Policy Shift
Healthcare stocks slid on Friday after a U.S. vaccine advisory panel voted to end the long-standing policy recommending that all infants receive the hepatitis B vaccine at birth. The new guidance restricts the birth dose to newborns whose mothers test positive for hepatitis B or whose status is unknown, leaving vaccination for others to doctors’ and parents’ discretion. The abrupt shift has rattled markets, reducing demand certainty for vaccine makers and spurring sell-offs in companies linked to childhood immunization.
Weekly Roundup
Last week, the S&P 500 rose 0.31 %, the Nasdaq Composite climbed 0.91 % and the Dow Jones Industrial Average gained 0.5 %, marking a second straight weekly advance. Gains were driven by renewed hopes that the Fed will cut interest rates soon after recent economic data showed consumer spending firming and inflation remaining tame. Softer employment indicators and improving consumer sentiment helped reinforce expectations of easier policy, encouraging investors to bid up rate-sensitive and growth stocks ahead of the Fed’s upcoming meeting.
Economic Data
Per the U.S. Bureau of Economic Analysis, the PCE price index for September increased 0.3%, decreasing from the 0.4% increase reported in August. Excluding food and energy, the core PCE price index increased 0.2%, remaining at the same level of rise reported in August. Personal income increased $94.5 billion (0.4%) in September, disposable personal income (DPI) increased $75.9 billion (0.3%) and the personal savings rate was at 4.7%.
Per a Fed report, consumer credit increased by $9.2 billion in October. The number for September was revised down to a rise of $11 billion from the previously reported $13.1 billion.
Per the U.S. Census Bureau, factory orders for September increased 0.2% after jumping 1.3% in August.