Stocks Rally Ahead of Inflation Data; Medical Stocks Slide as Weight-Loss Drug Hopes Rise

Dow Jones futures rose overnight ahead of Thursday's CPI inflation report, which could move markets and Fed rate hike outlook.

The stock market rally gave up early gains but major indexes bounced back, with Nasdaq closing just above 50-day line resistance.

Novo Nordisk and Eli Lilly extended gains as weight-loss drug hopes crush medical stocks. Adobe, Nvidia and DraftKings flashed buy signals.

The 10-year Treasury yield tumbled 6 basis points to 4.57%, down 19 basis points in two days as markets price in a Fed pause.

September producer price inflation came in a bit hot, but core PCE details looked good. Fed minutes signaled rates may not need to rise much more.