Wall Street Rally Slows Amidst Inflation Data Anticipation

U.S. stock index futures dipped following Wall Street's recent gains as investors anticipated key inflation data. The market's focus is on the Federal Reserve's next moves as economic data, including consumer price inflation, unfolds. Stocks like Tesla and crypto equities experienced slight declines amidst political and fiscal developments.

U.S. stock index futures showed a slight decline on Tuesday, following a rally that had propelled Wall Street to record highs in the wake of the elections. The dip comes as traders prepare for significant inflation data due later in the week, with implications for future monetary policy direction.

The anticipation of inflation data comes amidst reduced expectations for interest rate cuts by the Federal Reserve, as strong economic figures and potential inflationary pressures from new policies have emerged. Meanwhile, some stocks that had surged post-election have begun to retract gains.

Other market movements include tracking futures of small-cap indexes and fluctuations in the tech sector, reflecting broader economic and political indicators. Investors are keenly observing possible shifts in congressional control, which could influence legislative and fiscal policy directions.

(With inputs from agencies.)