Dow, S&P 500, Nasdaq poised to drop as inflation worries rise

US stock futures drifted lower on Wednesday ahead of fresh consumer inflation data, as investors weighed whether a Donald Trump White House would whip up price pressures.

Dow Jones Industrial Average futures (YM=F) fell roughly 0.3%, coming off a steep slide as stocks closed lower across the board. Contracts on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) also shed 0.3%.

Inflation has taken center stage again after the post-election rip higher hit a wall. The FOMO market has lost its mojo as it accepts that President-elect Trump’s policies could boost inflation as well as the economy. That helped push Treasury yields higher, promising higher borrowing costs all round.

Now the wait is on for the Consumer Price Index for October, seen as unlikely to show much progress on cooling inflation to the Federal Reserve’s target. The headline CPI reading is expected to come in at 2.6%, higher than in September, on its release at 8:30 am ET.

Investors will focus on the “core” print — which excludes food and gas prices — to provide the main clues to the Fed’s pace of easing after it lowered interest rates by 0.25% last week. Many economists suggest the prospect of a Trump inflation bump will prompt the central bank to dial down on rate cuts this cycle.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

The Fed might have to rethink another cut at its December meeting if inflation surprises “to the upside” over the next month, Minneapolis Fed president Neel Kashkari told Yahoo Finance. “That might give us pause,” he said at Yahoo Finance’s Invest conference on Tuesday.

Trump has named Tesla CEO Elon Musk and former GOP candidate Vivek Ramaswamy to lead a new Department of Government Efficiency. The incoming president’s picks for his cabinet are being closely watched for impact on his policies and the economy, though DOGE is not an government agency.