S&P 500 Pulls Back Ahead of Inflation Data Release

The S&P 500 index has pulled back from its 7000 level as markets await tomorrow's release of annual U.S. inflation (CPI) data.

A weaker-than-expected CPI reading could impact expectations for future Federal Reserve decisions, with some analysts anticipating a firmer stance from the central bank if prices do not show clear signs of cooling.

Recent employment data has already led markets to adjust their expectations, with the probability of the Federal Reserve holding rates at 3.75% rising above 93%, compared to around 70% just one month ago.