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The financial markets witnessed a notable trend as futures steadied following the surge of Wall Street indexes, particularly the Nasdaq, to record highs during the session. Technology stocks played a significant role, rallying sharply on the anticipation of lower interest rates in the near term. Tesla Inc (NASDAQ:TSLA) achieved a new peak, and market favorite NVIDIA Corporation (NASDAQ:NVDA) witnessed an impressive surge of over 3%.

Upcoming Economic Data and Fed Meetings

The current focus is on the upcoming producer inflation data scheduled for Thursday and the Federal Reserve's December meeting next week. S&P 500 Futures declined by 0.1% to 6,085.75 points, while Nasdaq 100 Futures dropped 0.2% to 21,754.0 points at 18:29 ET (23:29 GMT). Dow Jones Futures also fell 0.1% to 44,167.0 points. Consumer price index data revealed that inflation rose at its fastest pace in seven months in November. However, the reading was in line with expectations, alleviating some concerns about it exceeding estimates. This strengthened the belief that the Fed will cut interest rates by 25 basis points when it meets next week. According to CME Fedwatch, traders were pricing in a 98.1% chance of a cut next week, a significant increase from the 81% chance seen last week.The attention now turns to the producer price index data due on Thursday, which is just a few days before the Fed's final meeting for the year. While the central bank is widely anticipated to cut rates next week, investors remain uncertain about its long-term outlook on rates, especially in the face of persistent inflation. Additionally, the expansionary and protectionist policies under the incoming President Donald Trump are expected to drive up prices.