Stock Futures Rise on Inflation Progress

U.S. stock index futures turned positive on Friday, reversing earlier losses as investors reacted to signs of progress on inflation. The Personal Consumption Expenditures Price Index rose 0.3% in April, aligning with forecasts, boosting hopes for potential rate cuts by the Federal Reserve. Key indices showed modest gains as a result.

U.S. stock index futures reversed early losses on Friday after evidence of progress on inflation renewed hopes for forthcoming rate cuts from the Federal Reserve. The Personal Consumption Expenditures Price Index rose 0.3% in April, in line with forecasts by economists polled by Reuters. In the 12 months through March, PCE inflation gained 2.7%, as expected.

Core PCE, which excludes the volatile food and energy components, increased 0.2% last month against expectations of a 0.3% increase. Annually, it was at 2.8%, in line with forecasts. At 8:33 a.m. ET, Dow e-minis were up 50 points, or 0.13%, S&P 500 e-minis were up 8.75 points, or 0.17%, and Nasdaq 100 e-minis were up 14.25 points, or 0.08%.