On TuesdayThe Dow Jones Industrial Average rose 221 points, or 0.52%, to 42,518, the S&P 500 rose 7 points, or 0.11%, to 5,843 and the Nasdaq Composite fell 44 points, or 0.23%, to 19,044.

Futures suggest stocks could open slightly higher on Wednesday, but that could all change depending on key inflation data and a flurry of bank earnings before the starting bell rings on Wall Street.

The S&P 500 is 4.1% below its record closing high set on December 6, with the decline driven largely by rising Treasury yields amid concerns that revived inflation will prevent the Federal Reserve from keeping interest rates in line investors hoped to slow down.

Therefore, the December consumer price inflation report, released at 8:30 a.m. Eastern Time, is crucial for investor sentiment. Too hot and benchmark government bond yields could rise toward the 5 percent mark, sparking fears among stock investors. Significantly cooler, and traders could rediscover their bullish sentiment, leading to falling yields and higher stock prices.

“Although Tuesday’s inflation (producer price) report is weaker than expected, the stranglehold of high interest rates remains in place. All eyes are now on Wednesday’s consumer price index update, a crucial indicator that could reinforce or mitigate prevailing inflation concerns,” said Stephen Innes, managing partner at SPI Asset Management.