For me, the hot core CPI is the more important signal in the short term. A 0.3% monthly increase above expectations shows that inflation is still sticky, and the sharp rise in rate-hike expectations explains why Treasury yields are pushing higher. I would not completely ignore the weak consumer sentiment, but sentiment can be volatile while inflation data directly influences the Fed’s policy decision.

I am also watching the AI infrastructure story closely. HPE and Dell jumping more than 12% after being named as key suppliers for Oracle’s massive AI buildout shows that the AI investment cycle is expanding beyond just GPUs. I think this could continue to benefit the broader semiconductor, server, networking and power ecosystem, although valuations remain something I would be careful about.

For my portfolio, I am not planning to chase the volatility. Higher yields can pressure growth stocks and leveraged ETFs in the short term, so I prefer gradual accumulation on meaningful pullbacks. My view remains cautiously bullish over the medium to long term: the market may stay noisy around the Fed decision, but strong AI infrastructure demand could create opportunities when fear pushes good companies lower.