US stock futures were only slightly lower on Wednesday as investors analyzed the latest consumer inflation report to get a sense of the state of the overall economy.

Dow Jones Industrial Average futures fell by 125 points or 0.3%. S&P 500 futures hovered just below the zero line, while Nasdaq 100 futures 0.2% added.

The consumer price index report released Wednesday morning reflected a 0.2% increase in prices last month, with the annual inflation rate hitting 2.5%, its lowest since February 2021. According to the Dow Jones consensus estimate, the consumer price index was expected to have risen 0.2% last month and 2.6% year-on-year.

However, month-on-month core CPI – which excludes volatile food and energy prices – was slightly higher than expected.

Investors are still betting on a widely expected interest rate cut at the Federal Reserve’s meeting on September 17 and 18. According to the CME Group’s FedWatch index, traders are calculating an 85 percent probability that the Federal Open Market Committee will decide on a 25 basis point rate cut.

“Given the current situation with a Fed rate cut, unemployment near its lowest level in several decades and an expanding (if slowing) economy, the market should be able to reclaim its all-time high once we get past the volatility that precedes most presidential elections,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.