U.S. Stock Index Prices Little Changed Before the Release of Key CPI Data

U.S. stock index futures showed little movement on Wednesday, stabilizing after a downbeat session on Wall Street. Investors remained cautious ahead of the release of key inflation data that could provide insights into the Federal Reserve’s interest rate trajectory.

Wall Street indexes ended Tuesday lower, weighed down by continued weakness in technology stocks following disappointing earnings from cloud computing leader Oracle (ORCL).

It marked the second consecutive day of losses for both the S&P 500 and the NASDAQ Composite and the fourth straight negative session for the Dow Jones Industrial Average.

CPI Data in the Spotlight

Investors are now focused on the consumer price index data scheduled for release on Wednesday, seeking further clarity on inflation trends and their implications for interest rates. Headline CPI is anticipated to rise to 2.7% year-over-year from 2.6%, while core CPI, which excludes volatile items such as food and energy, is expected to hold steady at 3.3%.

This inflation data is likely to influence the Federal Reserve’s plans regarding interest rates. The central bank is widely expected to implement a 25 basis point rate cut at its meeting next week. However, uncertainty persists regarding the Fed’s longer-term strategy, with some officials expressing concerns about sticky inflation and the U.S. economy’s resilience.

Investors are also paying attention to the potential inflationary impact of President-elect Donald Trump’s economic policies. His proposals, including increased tariffs, are anticipated to add upward pressure on prices.

Corporate Earnings: Adobe in Focus

In the corporate earnings sector, Adobe Systems (ADBE) is set to report its results after the market close. Meanwhile, Alphabet (GOOGL), owned by Google, garnered attention following the announcement of a breakthrough in quantum computing, which could significantly enhance computing speeds.

Elsewhere, shares of Dave & Buster’s Entertainment (PLAY) plummeted 16% in pre-market trading after the Dallas-based arcade and restaurant chain announced the resignation of its CEO, Chris Morris, alongside weaker-than-expected third-quarter earnings.

Oil Prices Rise Amid Chinese Stimulus Hopes

Crude oil prices edged higher on Wednesday as traders anticipated further economic stimulus from China, the world’s largest crude importer. Chinese authorities recently unveiled measures aimed at boosting economic growth, fueling expectations of a rebound in oil demand.

Trade data showed a substantial increase in Chinese oil imports in November, marking the strongest annual growth in seven months. However, gains were tempered by industry data revealing a surprising rise in U.S. oil inventories for the week ending December 6, raising concerns over weaker demand during the winter season. Official data from the Energy Information Administration is due later on Wednesday.