Dow Futures Flat: Stocks Struggle to Rebound After Tech-Driven Selloff

U.S. stock futures were relatively unchanged on Tuesday night as heightened inflation fears following the release of fresh economic data led to a losing trading day on Wall Street. The Dow Jones Industrial Average futures fell 31 points, or 0.1%, while S&P 500 futures slid about 0.1%, and Nasdaq 100 futures traded just below the flatline. This comes after all three major averages finished solidly in the red on Tuesday, with the S&P 500 and blue-chip Dow Jones Industrial Average sliding more than 1% and around 0.4%, respectively, while the Nasdaq Composite led the pack in losses, dropping nearly 2%.

The Institute for Supply Management's services index for December showed an acceleration of activity in the services industry, but it also indicated an increase in prices. This has fanned concerns around stubborn inflation, raising questions about the trajectory of interest rate cuts from the Federal Reserve. According to the CME's FedWatch tool, fed funds futures trading data reflect a nearly 94% chance of no reductions at the central bank's meeting this month. The spike in Treasury yields on Tuesday, with the 10-year note reaching an intraday high of 4.699%, marks its highest level since April, indicating that investors are pricing in higher inflation expectations.