The major U.S. index futures are currently pointing to a roughly flat open on Wednesday, with stocks likely to show a lack of direction after moving mostly higher over the course of the previous session.

Traders may be reluctant to make significant moves ahead of the release of the Federal Reserve’s preferred readings on consumer price inflation shortly after the start of trading.

The personal consumption expenditures (PCE) price index is expected to rise by 0.2 percent for the second straight month, while the annual rate of growth is expected to accelerate to 2.3 percent in October from 2.1 percent in September.

The core PCE price index, which excludes food and energy prices, is also expected to increase by 0.3 percent for the second straight month, while the annual rate of growth is expected to tick up to 2.8 percent in October from 2.7 percent in September.

The inflation data could impact the outlook for interest rates ahead of the Fed’s next monetary policy meeting in mid-December.

Ahead of the data, CME Group’s FedWatch Tool is indicating a 66.5 percent chance the Fed will lower rates by another 25 basis points next month and a 33.5 percent chance the central bank will leave rates unchanged.

The futures remained little changed even after the release of some key economic data before the start of trading, including a Labor Department report showing initial jobless claims unexpectedly edged lower in the week ended November 23rd.

The Commerce Department also released a report showing durable goods orders increased by less than expected in the month of October.

After turning in a mixed performance early in the session, the major U.S. stock indexes all moved to the upside over the course of the trading day on Tuesday. The Dow recovered from early weakness to end the day at another new record closing high.

The Dow fell by as much as 0.7 percent in early trading but ended the day up 123.74 points or 0.3 percent at 44,860.31. The S&P 500 also climbed 34.26 points or 0.6 percent to a record closing high of 6,021.63, while the Nasdaq rose 119.46 points or 0.6 percent to 19,174.30.

The higher close by the major averages came as traders shrugged off President-elect Donald Trump’s latest threats to impose increased tariffs on Mexico, Canada and China.

In a post on his social media platform Truth Social, Trump said he would impose a 25 percent tariff on all products from Mexico and Canada on his first day in office, blaming the countries for the influx of illegal immigrants and illicit drugs into the U.S.

“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump said.

Trump said in a subsequent post that he would also impose an additional 10 percent tariff on Chinese products, claiming the country has not done enough to stop the “massive amounts of drugs, in particular Fentanyl, being sent into the United States.”

With Trump recently announcing he intends to nominate Scott Bessent as Treasury Secretary, traders may be optimistic the former president will not following through on his threats. Bessent has previously called for Trump’s planned tariff increases to be implemented gradually.

Stocks saw further upside as the minutes of the Federal Reserve’s latest monetary policy meeting revealed officials believe it will be appropriate to “gradually” lower interest rates.

The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in “about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment.”

The Fed said participants also noted that monetary policy decisions were not on a “preset course and were conditional on the evolution of the economy and the implications for the economic outlook and the balance of risks.”

Software stocks turned in a strong performance on the day, driving the Dow Jones U.S. Software Index up by 1.4 percent to a record closing high.

Utilities and pharmaceutical stocks also saw considerable strength, with the Dow Jones Utility Average and the NYSE Arca Pharmaceutical Index climbing by 1.3 percent and 1.2 percent, respectively.

On the other hand, housing stocks moved significantly lower, dragging the Philadelphia Housing Sector Index down by 1.8 percent.

The weakness among housing stocks came after the Commerce Department released a report showing a substantial pullback by new home sales in the month of October.

Oil service, airline and computer hardware stocks also saw notable weakness, partly offsetting the strength in the aforementioned sectors.

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