U.S. Futures Gain as Crucial Inflation Report Looms

U.S. stock index futures rose slightly on Friday before a significant inflation report, which could impact central bank interest rate decisions. Global markets have been volatile, but recent economic data has eased investor concerns. The focus now is on the Personal Consumption Expenditure data, key for Federal Reserve decisions in September.

On Friday, U.S. stock index futures saw an uptick in anticipation of a pivotal inflation report. The report holds the potential to shape investor expectations regarding central bank interest rate cuts this year.

Global markets are winding down a tumultuous period marked by a labor market slowdown, but risk-taking has increased with the Dow at record highs. Economic data revisions have alleviated investor anxiety, shifting focus to the upcoming Personal Consumption Expenditure data, the Federal Reserve's preferred inflation measure.

Economists predict a slight inflation rise to 2.6% annually for July. Amid optimism for a September rate cut, odds for a 25-basis-point reduction stand at 65.5%, while a 50-bps cut is at 34.5%. Meanwhile, premarket movements include gains for Nasdaq and S&P 500 E-minis, along with a rebound for Nvidia, despite an initial dip after earnings reports.

(With inputs from agencies.)