The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to give back ground after turning in a strong performance in the previous session.

Traders may look to cash in on yesterday’s gains, which saw the tech-heavy Nasdaq surge above 20,000 for the first time ever.

Negative sentiment may also be generated in reaction to a Labor Department report showing producer prices in the U.S. increased by more than expected in the month of November.

The Labor Department said its producer price index for final demand climbed by 0.4 percent in November after rising by an upwardly revised 0.3 percent in October.

Economists had expected producer prices to inch up by 0.2 percent, matching the uptick originally reported for the previous month.

The report also said the annual rate of producer price growth accelerated to 3.0 percent in November from an upwardly revised 2.6 percent in October.

The annual rate of producer price growth was expected to rise to 2.6 percent from the 2.4 percent originally reported for the previous month.

While the data is not likely to significantly impact expectations the Federal Reserve will lower interest rates next week, it could reduce the chances the central bank continues to lower rates early next year.

The Labor Department also released a separate report showing first-time claims for U.S. unemployment benefits unexpectedly increased in the week ended December 7th.

Stocks moved mostly higher during trading on Wednesday, rebounding strongly following the pullback seen to start the week. The tech-heavy Nasdaq showed a particularly strong upward move, closing above 20,000 for the first time.

The Nasdaq surged 347.65 points or 1.8 percent to a new record closing high of 20,034.89, while the S&P 500 climbed 49.28 points or 0.8 percent to 6,084.19.

Meanwhile, the narrower Dow showed a lack of direction over the course of the session before closing down 99.27 points or 0.2 percent at 44,148.56. The blue chip index closed lower for the fifth straight session amid a slump by shares of UnitedHealth (NYSE:UNH).

The strength in the broader markets came following the release of closely watched consumer price inflation data that came in line with economist estimates.

The Labor Department said its consumer price index climbed by 0.3 percent in November after rising by 0.2 percent for four straight months. The increase matched expectations.

The annual rate of growth by consumer prices ticked up to 2.7 percent in November from 2.6 percent in October, which was also in line with estimates.

Excluding food and energy prices, core consumer prices still rose by 0.3 percent in November, matching the increases seen in each of the three previous months as well as expectations.

The Labor Department also said core consumer prices in November jumped by 3.3 percent compared to the same month a year ago, unchanged from October and in line with estimates.

With the data matching expectations, the report increased confidence the Federal Reserve will lower interest rates by another quarter point next week.

CME Group’s FedWatch Tool is currently indicating a 98.6 percent chance the Fed will cut rates by 25 basis points at its December meeting.

“The increase in the inflation rate (2.7% vs 2.6%) won’t be enough to spoil Christmas – the Fed is going to cut rates another 25 bps next week and that should enable markets to rally into year end,” said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

He added, “The headline CPI was consistently above 3% in the beginning of the year and now it is consistently below 3%, so despite the fact that the series is a little noisy from month-to-month, we believe the Fed is likely to look through these fluctuations and continue on their easing path.”

Gold stocks saw substantial strength on the day amid a sharp increase by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 3.9 percent to its best closing level in over a month.

Significant strength also emerged among airline stocks, with the NYSE Arca Airline Index soaring by 3.7 percent to a nearly one-month closing high.

Semiconductor, networking and software stocks also saw considerable strength, contributing to the surge by the tech-heavy Nasdaq.

Notable strength was also visible among oil service, retail and brokerage stocks, while healthcare stocks bucked the uptrend.

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