The market is focused today on the upcoming release of core PCE inflation data

This is the Fed's preferred indicator
Delayed due to the government shutdown last fall
The data released this time covers October and November
If the core PCE data exceeds 0.3%
It will be seen as a hawkish signal to delay rate cuts
Expected data of 0.1-0.2% supports a more dovish view and keeps the possibility of rate cuts open
The Federal Reserve currently expects to pause at the next meeting
The market is only pricing in a 5% probability of rate cuts