U.S. Stocks Surge Amid Inflation Report

U.S. stock futures rose on Friday following a key inflation report that met expectations, strengthening prospects for a rate cut by the Federal Reserve in September. The Personal Consumption Expenditure index increased by 2.5% annually in July, while core PCE rose 2.6%, both close to forecasts.

On Friday, U.S. stock index futures extended their gains following a pivotal inflation report that aligned closely with market expectations. This development has bolstered the likelihood of an interest-rate cut at the Federal Reserve's upcoming September meeting.

The Personal Consumption Expenditure (PCE) index—considered the Fed's favored metric for monitoring inflation—recorded a 2.5% year-over-year rise in July, just shy of the anticipated 2.6%, as per a Reuters survey of economists. Monthly growth for July stood at 0.2%.

Furthermore, the Core PCE (which strips out volatile food and energy prices) saw a 2.6% annual increase, narrowly missing the forecast of 2.7%. At 08:33 a.m. ET, Dow E-minis climbed 94 points (0.23%), Nasdaq 100 E-minis surged 154 points (0.79%), and S&P 500 E-minis rose 24 points (0.43%).