The Federal Reserve (U.S. central bank) unanimously raised interest rates by a quarter point on Wednesday to address stubbornly high inflation, marking its first hike since 2023. Markets showed little reaction, leaving investors focused on how many additional increases may follow. Morningstar senior US economist Preston Caldwell expects one more hike in 2026 before rate cuts begin in 2027, diverging from prevailing market expectations. The weekly Morningstar Smart Investor newsletter also examines potential stock-market drivers after the hike, three risks for index fund investors, and continuing artificial-intelligence safety concerns. OpenAI is reportedly seeking funding at a $1.2 trillion valuation while investors await an IPO (initial public offering) filing from Anthropic. PitchBook senior analyst Harrison Rolfes discusses how to interpret OpenAI’s valuation, while PitchBook’s Jacob Robbins argues that the numbers behind Databricks’ reported $190 billion valuation do not add up ahead of a likely 2027 IPO. Morningstar Index’s Dan Lefkovitz identifies three major risks facing index investors, including repeated exposure to AI-fueled stocks and another risk that could surprise investors. Morningstar directs readers to its Markets page for current coverage and a weekly calendar of upcoming data and events.