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.

Inflation data bolsters Fed rate cut hopes, lifting US stock sentiment. Will S&P 500 and Nasdaq extend the post-election rally? Read more for key insights.

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.

The US dollar rose to its highest level since April 16, fueled by Donald Trump's victory in last week's U.S. presidential elections. The dollar index rose 0.33 per cent to 106.34 after hitting as high as 106.