The stock market is up today primarily due to optimism around an anticipated Federal Reserve interest rate cut next week, which investors believe will support equity prices. Recent U.S. economic data showed a modest rise in consumer inflation in August but also a significant increase in jobless claims, indicating a weakening labor market that reinforces expectations for the Fed to reduce rates. This combination has shifted market focus away from inflation concerns toward the potential easing of monetary policy, propelling gains in major indices like the Dow, S&P 500, and Nasdaq to record or near- record highs. Additionally, strong corporate earnings, especially in big tech and artificial intelligence sectors, and a sustained rally in riskier stocks are contributing to the market's upward momentum.
