Market Shifts Amid Election Aftermath and Inflation Woes

U.S. stock index futures dipped slightly as traders awaited key inflation data following recent record highs on Wall Street, largely attributed to optimism over Trump's proposed tax cuts. Markets are watching potential interest rate changes by the Federal Reserve, amid strong economic data and political developments.

U.S. stock index futures experienced a decline on Tuesday, following a robust rally on Wall Street prompted by recent election results. Traders are now focused on upcoming inflation data expected later in the week, seeking insights into the country's economic and monetary policy strategies.

The previous session saw the three major indexes achieving record high closes, as investors largely anticipate that President-elect Donald Trump's proposals for tax cuts and easier regulatory policies will bolster equities. While some stocks that were predicted to thrive under Trump's administration relinquished gains, electric vehicle manufacturer Tesla dropped 5% in premarket trading after a major surge.

Market participants are keenly aware of Wednesday's consumer price inflation data release, a critical determinant for the U.S. Federal Reserve's policy outlook. Despite solid economic data, markets have adjusted expectations on interest rate cuts for the upcoming year. Traders still envision a significant likelihood of a rate cut at the December Fed meeting, contingent on forthcoming inflation figures.

(With inputs from agencies.)