In the ever-volatile world of financial markets, Wednesday saw U.S. stock index futures dipping during evening trading sessions, driven by a wave of investor apprehension following the release of hotter-than-expected inflation data. This unexpected turn of events prompted a swift reversal in expectations for a June rate cut by the Federal Reserve, setting a cautious tone for the market ahead.

The release of the Consumer Price Index (CPI) data for March proved to be the catalyst for the market downturn, marking the fourth consecutive month of readings surpassing expectations. This unsettling trend, coupled with the minutes from the Federal Reserve's March meeting, which suggested a cautious stance on inflation, weighed heavily on investor sentiment.

Wall Street bore the brunt of this sentiment shift, with major indexes experiencing notable declines. The S&P 500 Futures, Nasdaq 100 Futures, and Dow Jones Futures all recorded losses, reflecting investor concerns about the potential implications of prolonged higher interest rates. Notably, the technology sector faced additional pressure due to concerns about stretched valuations, prompting profit-taking activities among investors.

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The repercussions of the inflation data and the Fed's cautious stance were felt not only in the stock market but also in the realm of expectations for future monetary policy. Traders swiftly adjusted their forecasts, with the probability of a June rate cut by the Fed plummeting significantly. Instead, markets now anticipate a likelihood of the Fed maintaining rates at their current levels, with minimal chances of a rate cut in June.

Amidst the market turbulence, attention turned to the upcoming first-quarter earnings season, which promises to provide further insights into the health of corporate America. Delta Air Lines Inc kicked off the season with better-than-expected results, albeit with a subsequent decline in its stock price. Eyes are now on reports from major Wall Street banks such as JPMorgan Chase & Co, Citigroup Inc, and Wells Fargo & Company, as well as asset manager BlackRock Inc.

In the realm of aftermarket movers, Alpine Immune Sciences Inc witnessed a significant surge following news of its acquisition by Vertex Pharmaceuticals Inc, while Vertex itself experienced a slight decline. These developments underscore the dynamic nature of the market and the potential for swift shifts in investor sentiment.

As the market navigates through uncertain waters, fueled by inflation concerns and shifting expectations for monetary policy, investors remain vigilant, closely monitoring economic indicators and corporate earnings reports for insights into the future trajectory of the market.

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