Stock Market Awaits Inflation Reports Amid Fed Rate Speculation

Wall Street's primary indexes dipped on Tuesday as technology losses counterbalanced gains in communications services. Key inflation metrics are anticipated, potentially impacting Federal Reserve's rate decisions. Investors anticipate an 86% chance of a rate cut, with the CPI set to confirm the Fed's next move.

Wall Street's main indexes closed lower on Tuesday, with declines in the technology sector negating gains in communications services. Investors are in anticipation of pivotal inflation reports that might sway the Federal Reserve's forthcoming interest rate decisions.

Of the S&P 500's 11 major industry sectors, only three saw gains ahead of the November Consumer Price Index reading, a significant report before the Fed's December 17-18 policy meeting. Headline inflation likely ticked up slightly to 2.7% in November from October's 2.6%.

Investors are currently focused on data that might not disrupt the Fed's plans. With an 86% chance for a rate cut next week, analysts and traders closely watch for signs of the Fed's future monetary policy trajectory as the central bank hints at a slower pace of easing.

(With inputs from agencies.)