• US stocks ended lower on Wednesday as traders anxiously wait for brand recent inflation data.

• PCE inflation, the Fed’s preferred measure, will probably be published on Thursday morning.

• The figures will probably be essential in determining the trail of rate of interest this yr.

US stocks slumped on Wednesday as traders eyed upcoming inflation data and continued to judge the outlook for rate cuts this yr.

Major averages ended the day with a loss, with the Dow Jones Industrial Average loggging its third straight losing session.

All eyes will probably be on the Personal Consumption Expenditures index on Thursday, which is the Federal Reserve’s preferred measure of inflation. Economists polled by Dow Jones predict consumer expenditure prices to rise 0.3% for the month of January, higher than the prior month’s 0.2% increase.

The data point will probably be key in determining the trail of Fed rate cuts this yr, especially if inflation is on the market in hotter than expected.

“There are good reasons to assume that the assumptions of the market that the PCE will probably be barely hotter than last month,” Arnim Holzer, Easterly EAB Risk Solution’s global macro strategist said in an announcement. “We proceed to think that the Fed’s policy of waiting and watching is valid,” he added.

Investors have been steadily dialing back their expectations for Fed rate cuts this yr, as central bankers wish to keep the lid on inflation. The economy also looks relatively strong, which reduces the need to chop rates of interest to avoid a recession, in step with Holzer.

Markets are pricing in a near-100% likelihood the Fed will keep rates regular at its next policy meeting, and see a 57% likelihood the Fed will only lower rates by 75 basis points or less by the tip of the yr, in step with the CME FedWatch tool.

Here’s where US indexes stood on the 4:00 p.m. closing bell on Wednesday: 

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Here’s what else happened today: 

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil slipped 0.57% to $78.42 a barrel. Brent crude, the international benchmark, dipped 0.2% to $83.50 a barrel.

• Gold edged lower to $2,042.90 per ounce.

• The ten-year Treasury yield dipped 4 basis points to 4.27%.

• Bitcoin surged 6.08% to $60,603.

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