Wall Street hangs near its records as the battle to buy Warner Bros. heats up

Warner Bros. Discovery helped lead the market and rallied 6.8% after Paramount took its offer to buy the entertainment giant directly to shareholders. Paramount said it’s offering $30 in cash for each Warner Bros. Discovery share, as well as a quicker and easier way for investors to get their payout.

Paramount wants investors to take its all-cash bid for the whole company instead of Netflix’s offer of cash and stock for just Warner Bros. The board of directors for Warner Bros. Discovery had agreed to Netflix's offer last week.

The Netflix deal is already facing a potentially tough time getting through federal regulators because of worries about too much industry power sitting at one company. President Donald Trump said Sunday that a Netflix-Warner Bros. combination “could be a problem.”

Paramount Skydance’s stock rose 3.5%, while Netflix fell 3.7%.

Elsewhere on Wall Street, Confluent soared 28.5% after IBM said it would buy the company, which helps customers connect and process data. IBM said the $11 billion deal will help customers deploy artificial-intelligence tools better and faster, and its shares added 0.8%.

Carvana jumped 8.1% in its first trading after learning it will join the S&P 500 index on Dec. 22. Many professional investors directly mimic the index or at least measure their performance against it, which will push many to buy any stocks within it.

CRH, a provider of building materials, rose 5.9%, and Comfort Systems USA, a provider of mechanical and electrical contracting services, added 2.2% after likewise learning they’ll join the S&P 500 in a couple weeks.

They will replace LKQ, Solstice Advanced Materials and Mohawk Industries, which have all shrunk enough in size that they’ll drop down to the S&P SmallCap 600 index of smaller stocks.

On the losing side of Wall Street was CoreWeave. The AI cloud company fell 6.2% after it said it's raising $2 billion in debt that it could repay in stock and cash.

Trading outside of such movers was relatively calm. Wall Street has become much more calm recently following weeks of sharp and scary swings.

The highlight of this week will come Wednesday, when the Federal Reserve will announce its latest move on interest rates.

Stocks have already run to the edge of their records on widespread expectations that the Fed will cut its main interest rate for the third time this year. Lower interest rates can give the economy and prices for investments a boost, though their downside is that they can worsen inflation.

The big question is what kind of hints the Fed will offer about where interest rates will go after that. Many on Wall Street are bracing for talk aimed at tamping down expectations for more cuts in 2026.

Inflation has stubbornly remained above the Fed’s 2% target, and Fed officials are notably split in their opinions about whether high inflation or the slowing job market is the bigger threat to the economy.

In the bond market, Treasury yields climbed. The yield on the 10-year Treasury rose to 4.18% from 4.14% late Friday.

In stock markets abroad, indexes slid 1.2% in Hong Kong but jumped 1.3% in South Korea for two of the world’s bigger gains.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.