Wall Street Faces Mixed Opening Amid Inflation Report Anticipation

Wall Street's indexes prepared for a mixed open, influenced by anticipation over a crucial inflation report that might impact the Federal Reserve's interest rate decision. Bets remain high on a rate cut, but a slowdown in policy easing is expected due to a strong economy.

Wall Street's primary indexes appeared poised for a mixed opening on Tuesday as investors exhibited caution ahead of a significant inflation report. This report, expected within the week, could sway the Federal Reserve's impending interest rate decision.

The forthcoming November consumer price index, slated for release on Wednesday, stands as one of the final pivotal data sets before the Fed's meeting on December 17-18. Despite expectations of a slight increase in headline inflation last month, trader bets indicate an 86% probability of a 25 basis point interest rate cut next week, according to the CME's FedWatch Tool, especially after strong job growth but rising unemployment in Friday's employment report.

Nonetheless, many bets suggest the Fed may pause its rate cut cycle in January, as numerous officials hinted last week at a slower policy easing rate due to a resilient economic landscape. Meanwhile, Dow E-minis fell 106 points, or 0.24%, at 8:32 a.m. ET, while S&P 500 and Nasdaq 100 E-minis saw slight upticks. Tech stocks pressured Monday's closing as Nvidia faced an antitrust probe by Chinese regulators.

(With inputs from agencies.)