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 gearing up for December's crucial consumer price index to determine the direction of Fed policy.

World stocks are mixed follow Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of the Federal Reserve’s rate cuts.

Data Tuesday showed wholesale inflation slowing, but bigger price gains in key categories that feed into the Fed’s preferred inflation gauge contained excitement about rate cuts

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.

Wall Street pointed modestly higher early Tuesday ahead of new data on inflation and the kickoff to earnings season. Futures for the S&P 500 and the Dow Jones Industrial Average each ticked up 0.3% before the bell.

Most U.S. stocks rose following an encouraging update on inflation, but drops for Eli Lilly and some other influential stocks kept indexes in check. The S&P 500 edged up 0.1%