This added to investor reluctance to make big decisions ahead of a weekend deadline that could potentially result in a U.S. credit rating to "negative" from "stable", citing large fiscal deficits and a decline in debt affordability. Moody's late on Friday lowered its outlook on the U.S. While the CPI reading was the key issue keeping investors "in a holding pattern" on Monday, Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut said they were also digesting a weaker U.S. Traders have priced in a nearly 86% chance the Fed holds interest rates steady in December, according to the CME Group's FedWatch tool. "The market has the expectation the Fed is done with interest rate hikes and for that to be true, you need to have continued progress on the inflation front," along with labor market cooling, he said. The CPI reading, along with labor market, "are clearly in the driver's seat for what matters to financial markets, because it dictates where Fed policy goes from here," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company in Milwaukee, Wisconsin. But core prices are expected to be unchanged from the previous month. Economists expect a headline increase of 3.3% for October, easing from 3.7% in September. After the indexes enjoyed a solid rally on Friday, the market turned its focus on Monday to Consumer Price Index (CPI) data, due out Tuesday morning.
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