Core CPI came in hot in August, and many on Wall Street think rate-cut expectations are too high.

Wall Street's main indexes closed higher on Thursday after the latest inflation data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna's weak revenue forecast made it the S&P 500's biggest percentage loser.

The dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in U.S. inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week.

The US central bank looks set to cut interest rates next week after inflation in the world's biggest economy fell to a three-and-a-half-year low.