Wall Street Ready for Rally: Fed Rate Cut Expected

Wall Street is poised for gains following an expected inflation report, reinforcing predictions of a Federal Reserve interest rate cut. U.S. stock indexes rose in premarket trading, while major stocks like Tesla and Nvidia surged. GameStop and General Motors also saw gains, despite Macy's forecast cut.

Wall Street was on course for an upward opening Wednesday, as expectations for a Federal Reserve interest rate cut remained strong following an inflation report aligning with forecasts.

The Consumer Price Index increased by 0.3% in November, matching economist predictions. Core inflation marked 3.3%, excluding food and energy. Confidence in a Federal Reserve 25-basis-point rate cut later this month reached 96% based on CME's FedWatch Tool data, spurred by recent employment statistics.

U.S. equity futures showed the Dow Jones up by 64 points, the S&P 500 by 20.5 points, and Nasdaq by 114.5 points. This activity follows a broadly positive start to December for the indexes. Further stock movements included GameStop's 2.9% rise post-earnings report, General Motors' gain following its decision to cease robotaxi development, and Macy's decline due to profit forecast downgrades.

(With inputs from agencies.)