The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to regain ground after moving lower over the two previous sessions.

The futures advanced 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 is likely to increase confidence the Federal Reserve will lower interest rates by another quarter point next week.

CME Group’s FedWatch Tool is currently indicating a 96.7 percent chance the Fed will cut rates by 25 basis points at its December meeting.

However, the FedWatch Tool also indicates a 76.7 percent chance the central bank will then leave rates unchanged at its next meeting in late January.

After failing to sustain an early move to the upside, stocks moved moderately lower over the course of the trading session on Tuesday. The major averages added to the losses posted during Monday’s session, with the Nasdaq and the S&P 500 pulling back further off last Friday’s record closing highs.

The major averages dipped to new lows for the session in the latter part of the trading day. The Dow slid 154.10 points or 0.4 percent to 44,247.83, the Nasdaq fell 49.45 points or 0.3 percent to 19,687.24 and the S&P 500 slipped 17.94 points or 0.3 percent to 6,034.91.

The weakness that emerged on Wall Street came as traders continued to cash in on recent strength in the markets ahead of the release of the Labor Department’s closely watched report on consumer price inflation on Wednesday.

“There’s been little sign of the hoped-for ‘Santa rally’ across markets today as Wall Street continues to be distracted ahead of tomorrow’s inflation data,” said Danni Hewson, head of financial analysis at AJ Bell.

Computer hardware stocks moved sharply lower on the day, with the NYSE Arca Computer Hardware Index plunging by 3.8 percent after ending Monday’s trading at a nearly five-month closing high.

Significant weakness was also visible among semiconductor stocks, as reflected by the 2.5 percent slump by the Philadelphia Semiconductor Index.

Housing stocks also saw considerable weakness on the day, dragging the Philadelphia Housing Sector Index down by 2.1 percent.

Homebuilder Toll Brothers (NYSE:TOL) led the sector lower after reporting fiscal fourth quarter earnings and revenues that beat estimates but weaker than expected unadjusted homebuilding gross margin.

On the other hand airline stocks showed a strong move to the upside, driving the NYSE Arca Airline Index up by 1.7 percent. Alaska Air Group (NYSE:ALK) soared by 13.2 percent after raising its fourth quarter profit forecast.

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