U.S. consumers became more optimistic about employment prospects, personal finances and stock market performance in the latest New York Fed survey, even as short-term inflation expectations edged higher. Median one-year inflation expectations rose to 3.7%, while three-year expectations stood at 3.3% and five-year expectations remained stable at 3.0%. The probability that U.S. stock prices will be higher a year from now climbed to its highest level since April 2021, underscoring a broader improvement in household sentiment as inflation pressures appear to ease. Investors are now looking to the upcoming U.S. Bureau of Labor Statistics July inflation data, as well as moves in energy and food prices and Federal Reserve communication, for clearer signals on the path of inflation.