The CPI announced tonight was lower than expected, which is favorable for a market interest rate cut. However, the market generally expects the Federal Reserve to maintain interest rates at its meeting next week.

The recent strong non-farm payroll report has led traders to lower their expectations for a Federal Reserve rate cut. The money market anticipates that the Federal Reserve will cut rates by 45 basis points before the end of the year, indicating that only one rate cut this year is fully priced in, while the likelihood of a second rate cut is 80%.