Stocks Waver as Inflation Data Moderates Rate Hike Fears

U.S. stock index futures saw lesser drops after May inflation data showed a 4.2% rise in the Consumer Price Index, aligning with expectations. This tempered concerns over further Federal Reserve tightening. Dow, S&P 500, and Nasdaq futures were down marginally by 0.6%, 0.51%, and 0.61%, respectively.

U.S. stock index futures minimized losses on Wednesday following May inflation data, easing some concerns over further Federal Reserve policy tightening.

The Labor Department reported a 4.2% annual increase in the Consumer Price Index for May, aligning with market expectations and calming fears of aggressive interest rate hikes.

As of 08:33 a.m. ET, Dow E-minis fell by 305 points or 0.6%, S&P 500 E-minis dropped 38 points or 0.51%, and Nasdaq 100 E-minis declined 179 points or 0.61%.