What Happened?
Shares of global media and publishing company News Corp (NASDAQ:NWSA) jumped 3.8% in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
The shares closed the day at $25.69, up 3.6% from previous close.
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What Is The Market Telling Us
News Corp’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 6.1% on the news that the company reported third-quarter 2025 results that surpassed Wall Street's expectations. The global media company posted revenue of $2.14 billion, representing a 2.3% increase year-over-year and beating the analyst consensus by 2%. Profitability also came in ahead of forecasts, with a GAAP profit of $0.20 per share, which was 9.4% above estimates. Furthermore, the company demonstrated improved efficiency, with its operating margin expanding significantly to 56.1%, a substantial increase from 10.2% in the same quarter last year. The positive results on both the top and bottom lines appeared to resonate with investors.
News Corp is down 6.6% since the beginning of the year, and at $25.66 per share, it is trading 17.3% below its 52-week high of $31.03 from September 2025. Investors who bought $1,000 worth of News Corp’s shares 5 years ago would now be looking at an investment worth $1,434.
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