Weak labor market data overshadowed a sticky inflation print last week, indicating the Federal Reserve may cut interest rates. Consumer prices rose 0.4% in August, while jobless claims hit a four-year high. Wall Street expects a 25 basis point rate cut, but inflation remains a concern for the Fed.

Despite concerns, Wall Street remains optimistic about AI powering stocks’ bull run. Oracle’s strong AI backlog impressed investors, highlighting tech sector strength. UBS predicts further upside in US equities, with Nasdaq hitting 22,000, S&P 500 and Dow Jones reaching new highs. Fed rate cuts and tech earnings momentum drive market optimism.

Read more at Yahoo Finance: What Wall Street is saying about the central bank’s next rate decision