US stock futures fall after Wall Street hits record high on Consumer Price Index (CPI) By Investing.com

Investing.com — U.S. stock index futures fell slightly on Wednesday evening, as Wall Street retreated from record highs, with consumer inflation data in line with expectations for a December interest rate cut.

Futures settled after Wall Street indices – especially the Nasdaq – hit a record high during the session, with technology stocks rising sharply on the back of the possibility of lower interest rates in the near term. Tesla Inc (NASDAQ:) hit a record high, while market darling NVIDIA Corporation (NASDAQ:) rose more than 3%.

The focus now is on the upcoming producer inflation data due on Thursday, and the Fed’s December meeting next week.

The index fell 0.1% to 6,085.75 points, while it fell 0.2% to 21,754.0 points by 18:29 ET (23:29 GMT). It fell 0.1% to 44,167.0 points.

CPI data reinforces bets on an interest rate cut in December

Data showed that inflation rose at its fastest pace in seven months in November. But the reading was broadly in line with expectations, allaying some fears that it would beat estimates.

This reinforces bets that the Fed will cut interest rates by 25 basis points when it meets next week. Traders saw a 98.1% chance of a rate cut next week, up sharply from the 81% chance seen last week, according to .

The focus now is on data scheduled for Thursday, which comes less than a week before the Federal Reserve’s final meeting of the year.

While the central bank is widely expected to do so, investors are less confident about its long-term outlook on interest rates, especially in the face of steady inflation.

Expansionary and protectionist policies under incoming President Donald Trump are also expected to push prices higher.

Wall Street is buoyed by technology gains

Wall Street has cheered at the prospect of lower interest rates in the near term, with technology stocks rising further. Speculation about less regulatory scrutiny of the sector under Trump has also led to gains in technology, as has continued optimism about artificial intelligence.

The index rose 1.8% to a record level of 20,033.61 points, while the index rose 0.8% to 6,084.19 points.

The index fell 0.2% to 44,148.56 points. The index was mainly affected by losses in stocks of major insurance companies and pharmacy benefit managers, after lawmakers introduced a bipartisan bill to force health insurance companies to divest their pharmacy businesses.