Wall Street Braces for Key Inflation Data Amid Mixed Trades

Wall Street prepared for a mixed open on Tuesday as investors awaited a key inflation report. With the Federal Reserve expected to deliver another interest rate cut, market players were cautious. Tech stocks under pressure, while presidential policies could boost performance.

Wall Street's primary indexes appeared poised for a mixed opening on Tuesday, as investors exercised caution ahead of a crucial inflation report scheduled for release this week. The findings are expected to impact the Federal Reserve's forthcoming interest rate decision. Wednesday's consumer price index (CPI) is among the last significant datasets before the Fed's Dec. 17-18 meeting, with headline inflation anticipated to have slightly increased last month.

Market bets indicate an over 86% probability of the Fed implementing a 25 basis point interest rate cut next week, as per CME's FedWatch Tool. This surge followed a notable employment report showing job growth and an uptick in unemployment. Despite this, indications suggest the central bank may pause its easing cycle in January, as some Fed officials hinted at a slower pace of monetary policy easing amid a strong economy.

In premarket trading at 8:32 a.m. ET, Dow E-minis declined by 106 points or 0.24%, while S&P 500 E-minis rose by 0.5 points, or 0.01%, and Nasdaq 100 E-minis increased by 27.5 points, or 0.13%. Wall Street's main indexes closed lower Monday, pressured by technology stocks, notably Nvidia, after an antitrust investigation by China's regulator. The S&P 500 and Nasdaq saw gains aided by Donald Trump's election victory, potentially buoyed by the anticipated policies of tax cuts and regulatory changes.

(With inputs from agencies.)