Wall Street Stays Cautious: Awaiting Key Inflation Data

U.S. stock index futures hovered as investors awaited critical inflation data potentially impacting the Federal Reserve's policies. With key CPI figures due, investors are pondering rate changes. Markets tread carefully, despite overall gains and movements in tech stocks, amid broader economic uncertainties.

On Wednesday, U.S. stock index futures remained range-bound as investors hesitated before a crucial inflation reading later in the day. The outcome could significantly influence the Federal Reserve's policy decisions this month.

The pivotal consumer price index (CPI) reading is one of the last major datasets ahead of the Fed's upcoming meeting on December 17-18. It is projected that headline inflation increased by 0.3% month-over-month and reached 2.7% annually in November. This figure remains above the Federal Reserve's 2% target.

Investors are keenly watching for any signals of a possible deceleration in rate cuts next year. In early trading, Dow E-minis dipped slightly while S&P 500 and Nasdaq E-minis showed modest gains, reflecting broader cautious optimism in the market.

(With inputs from agencies.)