U.S. stock index futures slightly extended losses Wednesday after an October inflation reading came in much higher than expected.

How are stock-index futures trading?

S&P 500 futures
ES00,
-0.32%

were down 0.3% at 4,663.75.

Dow Jones Industrial Average
YM00,
-0.15%

futures fell 52 points, or 0.1%, to 36,157.

Nasdaq-100 futures
NQ00,
-0.60%

were down 0.6% at 16,109.75.

On Tuesday, the Dow Jones Industrial Average
DJIA,
-0.31%

fell 112 points, or 0.3%, after back-to-back gains, while the S&P 500
SPX,
-0.35%

snapped an eight-day winning streak and the Nasdaq Composite
COMP,
-0.60%

ended a run of 11 consecutive gains.

What’s driving the market?

The consumer price index rose 0.9% in October, compared with economists’ expectations for a rise of 0.6%. The core reading, which excludes volatile food and energy prices, rose 0.6% versus expectations for a 0.4% rise. Year over year, CPI rose 6.2%, a 31-year high and more than triple the Federal Reserve’s 2% target.

“If inflation doesn’t subside, the Federal Reserve may need to taper at a more substantial rate and hike interest rates, which could hurt stocks and bonds,” said Nancy Davis, founder of Quadratic Capital Management and portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge Exchange-Traded Fund.

Separately, data showed first-time applications for unemployment benefits fell by 4,000, to 267,000, in the week ended Nov. 6.

The CPI update comes a day after news of higher U.S. producer prices. Meanwhile, China on Tuesday reported its own factory gate prices surged 13.5% in October, the highest level since 1996. Consumer prices in the country rose 1.5% to a 13-month high, driven mainly by a jump in prices for food and fuel.

Investors will be waiting to see if stocks can recover after Tuesday’s losses halted after the S&P 500 and Nasdaq ended their lenghty winning streaks.

Shares of Tesla
TSLA,
-11.99%

tumbled 11% on Tuesday after a string of headlines that have rattled investors. Founder and CEO Elon Musk over the weekend asked Twitter followers if he should sell 10% of his stock, with the majority saying yes, and his brother Kimbal sold shares a day before that tweet.

After surging 42% in October, the electric-car maker’s stock has dropped 16% this week, and premarket gains of around 2% have eroded.

A Tesla rival will begin trading on the Nasdaq Wednesday, as Amazon.com
AMZN,
+2.50%

-backed electric-vehicle maker Rivian Automotive Inc. is due to debut under the ticker symbol RIVN RIVN.

Rivian priced its initial public offering at $78 a share Tuesday evening, well above its expected range and valuing the company at $77 billion on a fully diluted basis.

Rivian IPO: 5 things to know about the Amazon-backed electric-vehicle maker

And: NIO forecast disappoints as Chinese electric-car maker faces supply-chain concerns

The Walt Disney Co.
DIS,
-1.00%

will report earnings after the close on Wednesday.

What companies are in focus?

Coinbase Global Inc.
COIN,
+0.98%

stock dropped 10% in premarket trading, after the cryptocurrency platform reported disappointing sales amid a summer slowdown in crypto trading.

DoorDash Inc.
DASH,
-0.59%

stock climbed 16%, after the delivery company posted record sales and orders, and announced an all-stock deal worth more than $8 billion for Finnish commerce-delivery platform Wolt.

Upstart Holdings Inc.
UPST,
-6.24%

reported better-than-expected earnings for its latest quarter, but shares of the lending company fell 17% in premarket trading.

Perrigo Co.
PRGO,
-1.00%

stock fell 7% after disappointing earnings and a profit warning from the Dublin-based consumer self-care products maker, which said it saw record unshipped orders due to supply chain issues.

How are other assets trading?

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.473%

rose 4.6 basis points to 1.476%. Yields and debt prices move in opposite directions.

The ICE U.S. Dollar Index
DXY,
+0.31%
,
a measure of the currency against a basket of six major rivals, was up 0.4%.

The U.S. benchmark crude contract
CL00,
-0.20%

edged up 0.2% to $84.34 a barrel. Gold futures 
GC00,
+1.33%

rose 1% to $1,848.90 an ounce.

The Stoxx Europe 600 
SXXP,
-0.04%

was down 0.1%, while London’s FTSE 100 
UKX,
+0.67%

 was up 0.6%.

The Shanghai Composite
SHCOMP,
-0.41%

fell 0.4% and Hong Kong’s Hang Seng Index 
HSI,
+0.74%

rose 0.7%, while Japan’s Nikkei 225 
NIK,
-0.61%

fell 0.6%.

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