Futures on the New York Stock Exchange declined on Wednesday ahead of a crucial inflation report that is expected to provide insight into the Federal Reserve’s monetary policy, and in particular, the timing of its interest rate cuts.
Contracts listed on the Dow Jones Industrial Average were down 0.3%, as were those on the benchmark S&P 500, while those on the tech-heavy Nasdaq 100 were down by as much as 0.4%. Stocks have stagnated in the latter stages of February after reaching record levels, with the S&P 500 exceeding 5,000 for the first time in its history.
While the market received a major boost from the artificial intelligence boom, this was cut short as economic data suggested that inflation is remaining more stubborn than expected even amid signs of cooling. This has thus influenced market bets on when the Federal Reserve will introduce its first interest rate cut following its aggressive rate-hiking agenda.