CPI data awaited for more rate cues
Focus was squarely on consumer price index inflation data due later on Thursday, which is likely to factor into the Federal Reserve’s outlook on interest rates.
The reading is expected to show headline CPI eased slightly, while core CPI remained sticky in September.
Sticky inflation and strength in the labor market give the Fed less impetus to cut interest rates sharply. Strong payrolls data released last week had sparked this notion, with traders now completely pricing out expectations for another 50 basis point cut by the Fed in November.