The focus Thursday was now squarely on the release of the September consumer price index. 

The reading is expected to show a mild decline in headline consumer prices, while the core CPI - which excludes volatile food and energy prices - is expected to remain steady. Sticky inflation gives the Fed less impetus to cut interest rates at a fast pace. 

This notion was furthered by strong payrolls data released last week, which virtually eliminated bets for another 50 bps cut in November.

Traders were pricing in a 75.5% chance for a 25 bps cut, and a 24.5% chance for a hold in November, CME Fedwatch showed.