US markets experienced significant developments on Thursday, including a sharp rally in Warner Bros. Discovery shares amid takeover speculation.
Domestically, the economic backdrop turned more complex as jobless claims spiked and inflation data ran hotter than expected, setting the stage for a pivotal Federal Reserve policy meeting.
Meanwhile, former President Donald Trump announced a posthumous Medal of Freedom for conservative activist Charlie Kirk.
Warner Bros. Discovery rallies on takeover speculation
Warner Bros. Discovery Inc. (NASDAQ: WBD) surged more than 30% late Thursday following reports that Paramount Skydance is preparing a takeover bid for the entertainment conglomerate.
The potential move comes just weeks after Paramount and Skydance completed their merger and months after Warner Bros. Discovery outlined a strategic reset to separate its global TV networks from its streaming and studio operations.
Shares of WBD have been on a steady uptrend in recent months, more than doubling since their year-to-date low in April. The latest surge underscores renewed investor optimism as consolidation reshapes the media landscape.
Trump to posthumously award Medal of Freedom to Charlie Kirk
US President Donald Trump announced Thursday that conservative activist Charlie Kirk will be posthumously awarded the Presidential Medal of Freedom, the nation’s highest civilian honor.
Speaking at a 9/11 remembrance event at the Pentagon, Trump described Kirk as “a giant of his generation” and extended condolences to his family.
He noted that the ceremony, with a date yet to be announced, would be marked by a large gathering to celebrate Kirk’s contributions to civic life.
The announcement came against the backdrop of national mourning and reflection tied to the recent assassination of Kirk.
US jobless claims spike to pandemic-era levels
The US labor market showed signs of strain as weekly jobless claims rose by 27,000 to 263,000, the highest level since December 2020.
The sharp increase suggests a loosening of labor conditions that had remained tight throughout much of the post-pandemic recovery.
The jump in unemployment claims points to an economy at an inflection point, where weakening labor momentum could weigh on consumer spending and broader growth.
Analysts suggest the surge may complicate the Federal Reserve’s policy outlook in the coming weeks.
Inflation rises above monthly expectations
US inflation rose 2.9% year-over-year in August, in line with economists’ forecasts, but monthly data surprised to the upside.
The Consumer Price Index climbed 0.4% in August compared with July’s 0.2% gain, exceeding the 0.3% consensus estimate.
The latest figures arrive ahead of next week’s Federal Reserve policy meeting, where officials will weigh the balance between persistent inflationary pressures and signs of cooling in the job market.
Markets make new highs as it brace for Fed decision
Thursday’s economic releases presented mixed signals for investors.
The Dow Jones Industrial Average rose 615 points, or 1.4%, while the S&P 500 added 0.9% and the Nasdaq Composite advanced 0.7%.
All three major indexes touched new intraday record highs during the session.
Markets are now bracing for heightened volatility as policymakers weigh the dual challenges of inflation management and labor market softening.
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