Wall Street's record rally is facing a fresh risk from inflation, with US economic policy uncertainty and the artificial intelligence boom adding pressure on prices just as US stocks trade near all-time highs. The main worry among market participants is what investors are calling 'Trumpflation', that is price pressures linked to trade, energy and foreign policy proposals.
The Dow Jones, S&P 500 and Nasdaq Composite have hit record levels this year, helped by strong corporate earnings and investor excitement around artificial intelligence. But inflation concerns have resurfaced, raising fear that the Federal Reserve may have to keep policy tight or even raise rates again.
