Stock market today: Dow, S&P 500, Nasdaq futures edge lower with rate cuts front of mind

US stock futures pulled back on Thursday as investors waited for fresh inflation data to confirm market confidence that the Federal Reserve will cut interest rates next week.

Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) both slipped roughly 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell almost 0.3% to lead the way lower.

A downbeat revenue forecast from Adobe (ADBE) helped dampen the mood, revealing the Photoshop maker’s struggle for a payoff from its AI investments. Shares in the software maker sank nearly 10% in pre-market.

Investors are set to get the next piece of the inflation puzzle — an update on wholesale prices — after the latest consumer inflation data invigorated stocks on Wednesday, lifting the Nasdaq Composite (^IXIC) above 20,000 for the first time.

The in-line consumer price index reading cleared one of the last remaining risks to easing by the Fed in December. That boosted bets on a quarter-point rate cut in December to a near 99% chance, per the CME FedWatch tool.

Eyes are now on the November producer price index report due later for any reason to recalculate those odds. The chances of the Fed holding rates steady in January are also in focus, after several officials voiced a cautious stance on policy.

Elsewhere in central banks, the Swiss National Bank unexpectedly lowered its key rate by 0.5%, its biggest cut in almost 10 years. The move set the stage for the European Central Bank decision later Thursday, expected to deliver the fourth rate cut this year as the region’s economy struggles.