US Stock market: Fed's Daly says AI, inflation uncertainty clouds interest rate outlook

San Francisco Fed President Daly stated that AI-related uncertainty and persistent inflation risks cloud the interest rate outlook, urging caution before policy adjustments. Weaker-than-expected US June job growth prompted markets to scale back expectations of a Fed rate hike later this month and in September. The recent decline in oil prices following the Iran ceasefire was noted as a positive factor easing inflationary pressures.