While the Fed balances a weakening labor market and stubborn inflation, investors are cheering the prospect of a rate-cutting cycle. Richard Drew/AP New York —

The stock market is shrugging off worries about a weakening labor market and stubborn inflation, instead embracing a much-anticipated interest rate cut.

That optimism still has room to run, analysts say, but stocks could hit a wall if worries about an economic slowdown and still-high prices begin to weigh on consumer spending or businesses’ earnings.

The Dow, S&P 500 and Nasdaq each hit back-to-back record highs last week after the Federal Reserve delivered its first rate cut since December.

The S&P 500 is up 13% this year, rising through tariff uncertainty and concerns about the Trump administration encroaching on the

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