US stock futures hit pause on Wednesday as investors waited for a fresh reading on consumer inflation to help set expectations for the path of interest rates amid President Trump’s fast-moving tariff overhaul.
Dow Jones Industrial Average futures (YM=F) and S&P 500 futures (ES=F) both shed roughly 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) hovered just below the flat line, after the major gauges closed mixed on Tuesday.
Hopes for rate cuts face a key test in Wednesday’s report on the consumer price index for January, after Chair Jerome Powell reiterated that the Federal Reserve isn’t in a rush to change policy amid stubborn inflation and Trump-fueled uncertainty. Since December, traders have pared bets on Fed rate cuts and are now are pricing in just one reduction this year.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
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The CPI report, due at 8:30 a.m. ET, is expected to show annual headline inflation at 2.9% and a monthly rate of 0.3% in January, easing slightly from December’s level. Annual “core” inflation — which strips out more volatile food and gas costs — is seen as coming in at 3.1%, the lowest rate since April 2021.
At the same time, markets are on alert for more policy surprises from President Trump, who is expected to announce reciprocal tariffs on many countries before the end of the week.
Earnings season rolls on, with Reddit (RDDT) results in focus amid sky-high Wall Street expectations. Robinhood (HOOD) is also on the docket, after the stock recently touched a three-year high.
