Wall Street extended its record-breaking run this week, driven by surging investor confidence in Federal Reserve rate cuts and expectations of robust growth by AI-driven companies.
- VOO ETF is trading at record highs. Check the chart here.
Despite rising inflation and growing cracks in the labor market, traders are placing firm bets on a series of lower interest rates. August brought a fresh rise in annual inflation, which rose to 2.9%, the highest level since January.
However, a concurrent rise in jobless claims—263,000 in the first week of September—marked the worst weekly print since October 2021. After a flat August payrolls report, it’s becoming clear the labor market is losing steam.
Markets are now …