As stock market indexes (^DJI, ^IXIC, ^GSPC) tear higher to new record highs, many on Wall Street attribute this market momentum to some of the more fundamental principles, notably the strength of the most recent earnings season.

As headlining earnings reports come and go, Schroders Head of Multi-Asset for the Americas Adam Farstrup sits down with Yahoo Finance's Catalysts to talk about the market's shifting focus toward AI, the Federal Reserve's inflation outlook, and inflation prints, including this Friday's Personal Consumption Expenditures (PCE) index.

"And then when you start to look outside the US... we're actually seeing a recovery in PMIs [Purchasing Managers' Indexes] in Europe. So it's not that we have a strong manufacturing cycle, but it's come off the bottom," Farstrup says. "We're looking at the ECB [European Central Bank]e probably cutting rates before the Fed into the summer. So that can create some optimism, we think, going out into Europe and into Japan."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.