Fed's Influence: Markets Brace for Inflation Report Impact

U.S. stock index futures remained steady as investors awaited an influential inflation report. The coming data could impact the Federal Reserve's monetary policy decision, particularly on interest rates. Recent economic indicators, like job growth, have shaped expectations of the central bank pausing rate cuts next year.

On Tuesday, U.S. stock index futures showed little movement as investors awaited a key inflation report set for release this week, which could significantly influence the Federal Reserve's upcoming monetary policy meeting.

The November consumer price index (CPI) report is anticipated to reveal a minor rise in inflation, forming one of the last crucial datasets before the Fed's meeting on December 17-18. Current trader bets on a further 25 basis point interest rate cut next week exceed 86%, largely due to recent employment data signaling robust job growth but also an increase in unemployment.

The Fed is projected to halt rate cuts by January, as officials indicate a potential slowdown in monetary policy easing against a backdrop of economic resilience. Meanwhile, technology stocks, led by Nvidia, pressured Wall Street's main indexes, with premarket movements reflecting mixed corporate forecasts.

(With inputs from agencies.)