U.S. equity futures nudged higher in early Wednesday trading, while the dollar eased and Treasury yields steadied, as investors braced for a crucial December inflation report that could define the market's direction over the coming weeks.

Investors are weighing what a reported gradual rollout of Trump tariff hikes could mean for inflation and the Fed.

The S&P 500 and Nasdaq have both felt pressure as shares of major tech companies came under pressure Monday. Investors continue to keep a close eye on rising Treasury yields, which heighten worries about valuations, particularly for some of the market's most highly valued names.

World stocks were mixed on Wednesday following Wall Street’s mostly positive performance before key U.S. inflation data that could influence the pace of market-boosting rate cuts by the Federal Reserve.

US stocks gained after cooler-than-expected producer price index data soothed inflation concerns. The numbers on Tuesday showed wholesale inflation rose 0.2% in December on a monthly basis, compared to an estimated 0.4% increase. The reading climbed 3.3% from a year ago, below the projected 3.5% gain.

Stocks closed mixed on Monday, with Big Tech names paring losses as the dollar and bond yields climbed amid fading hopes for interest rate cuts ahead of this week's key consumer inflation reports. The blue-chip Dow Jones Industrial Average (^DJI),

Follow all the action as the December CPI inflation report impacts bonds, stocks and forex, and Goldman Sachs and JPMorgan kick off the new earnings season

The major indexes rose Tuesday on lower-than-expected December producer price index numbers. Palantir looks to end a losing streak.