The major U.S. index futures are currently pointing to a modestly higher open on Wednesday, with stocks likely to regain ground following the pullback seen in the previous session.

The futures edged higher after the Labor Department released closely watched consumer price inflation data that came in line with economist estimates.

The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations.

The report also said the annual rate of consumer price growth accelerated to 2.6 percent in October from 2.4 percent in September. The faster growth also came in line with economist estimates.

Excluding food and energy prices, core consumer prices climbed by 0.3 percent in October, matching the increases seen in each of the two previous months along with expectations.

The annual rate of core consumer price growth was unchanged from the previous month at 3.3 percent, which also in line with estimates.

The data matching expectations may lead to renewed confidence the Federal Reserve will continue lowering interest rates next month.

CME Group’s FedWatch Tool is currently indicating a 72.0 percent chance of another quarter point rate cut and a 28.0 percent chance rates will be left unchanged.

A pullback by treasury yields in reaction to the data may also generate buying interest, with the yield on the benchmark ten-year note giving back ground after reaching its highest closing level in four months on Tuesday.

Following the strong upward move seen in reaction to last week’s last elections, stocks gave back ground during trading on Tuesday. The major averages fluctuated over the course of the trading session before eventually closing in negative territory.

The Dow underperformed its counterparts, slumping 382.15 points or 0.9 percent to 43,910.98. The S&P 500 dipped 17.36 points or 0.3 percent to 5,983.99 and the tech-heavy Nasdaq edged down 17.36 points or 0.1 percent to 19,281.40.

The pullback on Wall Street may partly have reflected profit taking, as some traders looked to cash in on the recent strength in the markets.

The major averages have rallied to new record highs in recent days following former President Donald Trump’s decisive victory in last week’s presidential election.

Trump’s return to the White House is expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation.

Nonetheless, traders seemed reluctant to make more significant moves ahead of the release of closely watched economic data in the coming days.

A highly anticipated report on consumer price inflation is due to be released on Wednesday, while reports on producer price inflation, retail sales and industrial production are likely to attract attention later in the week.

“Inflation-related data releases take on heightened importance as markets try to ascertain whether the Fed can, absent weakness in the labor market, deliver the rate cut cycle it had expected just a few months ago— and whether the already extended market can withstand the possibility that the Fed could remain higher for longer,” said Quincy Krosby, Chief Global Strategist for LPL Financial.

Housing stocks moved sharply lower on the day, with the Philadelphia Housing Sector Index plunging by 2.7 percent.

Substantial weakness was also visible among steel stocks, as reflected by the 2.6 percent nosedive by the NYSE Arca Steel Index.

Computer hardware stocks also showed a significant move to the downside, dragging the NYSE Arca Computer Hardware Index down by 2.0 percent.

Telecom, biotechnology and gold stocks also saw considerable weakness, while software stocks showed a notable move to the upside.