Investing.com — U.S. stock index futures fell slightly Wednesday evening as Wall Street cooled from record highs, with on-line consumer inflation data reinforcing expectations for a December rate cut.
Futures held steady after Wall Street indexes, particularly the Nasdaq, hit record highs during the session, with technology stocks rising sharply on the prospect of lower interest rates in the near term. Tesla Inc (NASDAQ:) hit an all-time high, while market darling NVIDIA Corporation (NASDAQ:) rose more than 3%.
The focus now was on producer inflation data released next Thursday and on the Federal Reserve’s December meeting next week.
fell 0.1% to 6,085.75 points, while it fell 0.2% to 21,754.0 points at 6:29 PM ET (23:29 GMT). fell by 0.1% to 44,167.0 points.
CPI data strengthens bets on December rate cut
Data showed inflation rose at the fastest pace in seven months in November. But the numbers were largely in line with expectations, easing some concerns that the numbers would exceed estimates.
This reinforced expectations that the Fed will cut rates by 25 basis points at its meeting next week. Traders were pricing in a 98.1% chance of a cut next week, a sharp increase from the 81% chance last week, according to .
The focus now is on the data due Thursday, less than a week before the Fed’s final meeting for the year.
While it is widely expected that the central bank will do this, investors are less certain about its long-term prospects for interest rates, especially in light of persistent inflation.
Expansionary and protectionist policies under incoming President Donald Trump are also expected to drive up prices.
Wall St is backed by technological advancements
Wall Street cheered the prospect of lower interest rates in the near term, with technology stocks rising the most. Speculation about less oversight of the sector under Trump also fueled gains in the tech sector, as well as continued optimism about artificial intelligence.
The price rose 1.8% to a record high of 20,033.61 points, while the price rose 0.8% to 6,084.19 points.
The index lagged behind and fell by 0.2% to 44,148.56 points. The index was mainly weighed by losses in the stocks of major insurance companies and pharmacy benefit managers, after lawmakers introduced a bipartisan bill to force health insurers to divest their pharmacy businesses.