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Investing.com– U.S. stock index futures fell slightly on Wednesday evening, as Wall Street cooled from record highs and consumer inflation data bolstered expectations for a December rate cut.
Futures steadied after Wall Street indexes – particularly the Nasdaq – hit record highs during the session, with tech stocks rallying on the prospect of lower rates in the near term. Tesla Inc (NASDAQ: ) hit a record high, while NVIDIA Corporation (NASDAQ: ) rose over 3%.
The focus is now on the upcoming producer inflation data due on Thursday, and the Federal Reserve’s December meeting next week.
was down 0.1% at 6,085.75 points, while it was down 0.2% at 21,754.0 points by 18:29 ET (2329 GMT). fell by 0.1% to 44,167.0 points.
CPI data solidifies bets on a rate cut in December
data show that inflation rose at the fastest pace in seven months in November. But the reading was broadly in line with expectations, quelling some concerns that it would beat estimates.
This added to bets that the Fed will cut interest rates by 25 basis points when it meets next week. Traders are seen pricing in a 98.1% chance of a cut next week, which is significantly higher than the 81% chance seen last week, according to .
The focus now is on Thursday’s data, which comes less than a week before the Fed’s last meeting of the year.
Although the central bank is widely expected to , investors are less certain about its long-term outlook on rates, especially in conditions of stable inflation.
Expansionary and protectionist policies under new President Donald Trump are expected to raise prices.
Wall St encouraged by technological advances
Wall Street was buoyed by the prospect of lower rates in the near term, with technology stocks the biggest gainers. Speculation about less regulatory oversight of the sector under Trump has also fueled advances in technology, as well as sustained optimism about artificial intelligence.
It rose 1.8% to a record 20,033.61 points, while it rose 0.8% to 6,084.19 points.
It lagged behind, falling by 0.2% to 44,148.56 points. The index was weighed mostly by losses in major insurance and pharmacy benefits stocks, after lawmakers introduced bipartisan legislation to force health insurers to divest their pharmacy businesses.
