U.S. stock index futures edged lower on Wednesday as Treasury yields moved higher and weighed on rate-sensitive equities ahead of crucial inflation data that will offer more clarity on the pace of the Federal Reserve's interest rate reductions.

Short-term interest-rate futures contracts were pricing an 80% chance of a Fed rate cut, to the 4.25%-4.5% range, in December, up from about 60% before the data. Traders then are pricing in a slower pace of rate cuts next year, with the Fed likely stopping when the policy rate gets to the 3.75%-4% range.

U.S. stock index futures edged lower on Wednesday as an uptick in Treasury yields weighed on rate-sensitive equities ahead of crucial inflation data that will offer more signals on the pace of the Federal Reserve's interest rate reductions.

New inflation data out Wednesday showed consumer prices rose as forecast in October, keeping the Federal Reserve on track to lower interest rates again in December. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.

Traders trimmed bets Tuesday on Federal Reserve interest rate cuts next year, as early tallies for the U.S. presidential election rolled in through the evening.

Following today's inflation data, traders of short-term interest-rate futures contracts adjusted their expectations to now see a heightened probability of an additional quarter-point interest rate cut by the Federal Reserve in its