Stock Market Shivers Ahead of Key Inflation Data

U.S. stock index futures dipped on Wednesday as rising Treasury yields impacted rate-sensitive equities before significant inflation data. Wall Street's major indexes saw declines after a previous rally lost momentum. Investors are keenly awaiting CPI data to gauge inflationary trends and anticipate potential Federal Reserve interest rate moves.

U.S. stock index futures slipped on Wednesday amid rising Treasury yields that impacted rate-sensitive equities, as investors awaited key inflation data crucial for insights on Federal Reserve's interest rate decisions.

The main Wall Street indexes dropped on Tuesday, losing momentum after the U.S. election rally. The U.S. 10-year Treasury yield exceeded 4.4%, fueled by anticipated inflationary pressures under President-elect Donald Trump's policies. With a predicted 66% chance of a 25-basis point interest rate cut in December, October's CPI figures will be pivotal for investors.

Rate-sensitive megacap stocks, including Meta Platforms and Microsoft, fell premarket. Tesla gained 2.6% despite previous session losses. In other stock movements, Spirit Airlines plummeted over bankruptcy protection concerns, while Rivian surged following increased investment from Volkswagen.

(With inputs from agencies.)