Wall Street Tumult: Rate Hike Fears and Stock Movements

Wall Street sees a downturn as fears of elevated interest rates loom despite a cooler-than-expected inflation report. Stock index futures showed slight recovery after PCE index data. Investors adjust rate cut bets for 2025 amid Fed's indications of resilience in the economy and sustained inflation concerns.

Wall Street is bracing for a turbulent opening, driven by heightened concerns over potential interest rate hikes in the coming year. Despite a calming inflation report, futures for major indexes like the Dow, S&P 500, and Nasdaq are showing significant declines due to ongoing economic uncertainties.

Recent data from the Commerce Department concerning the Personal Consumption Expenditure (PCE) index has prompted traders to revise their expectations for rate cuts in 2025. Initially anticipated by December, new projections now suggest possible rate adjustments in March and October, reflecting Federal Reserve's updated forecasts.

Meanwhile, efforts in Congress to prevent a partial government shutdown face hurdles, with a critical spending bill negotiation under way. Investors remain cautious, influenced by major stocks like Tesla and Amazon slipping in premarket trades, while FedEx and Eli Lilly make gains following strategic moves and competitive developments.

(With inputs from agencies.)