US stock futures rise ahead of PCE inflation release

Investing.com-- U.S. stock index futures rose Friday at the end of a volatile week, and as investors awaited the release of a key inflation reading.

At 06:30 ET (10:30 GMT), Dow Jones Futures rose 78 points, or 0.2%, S&P 500 Futures gained 25 points, or 0.4%, and while Nasdaq 100 Futures climbed 135 points, or 0.7%.

The main Wall Street closed mixed on Thursday, with the Dow Jones Industrial Average rising 0.6% to a record high, while NASDAQ Composite dropped 0.2% and the S&P 500 ended flat.

On the last trading day of August, the S&P 500 is on pace for a gain of almost 1.3% gain during the month, while the DJIA is on track to add 1.2%. The Nasdaq Composite is the sole loser of the three major averages, off by nearly 0.5% this month.

PCE data awaited for more rate cut cues

The focus Friday will be squarely on the PCE price index for July.

The reading is expected to show a slight pick-up in inflation through the prior month, while inflation is also expected to remain largely above the Federal Reserve’s 2% annual target.

Markets are still pricing in a rate cut in September, following a slew of dovish signals from Fed officials. But any signs of inflation remaining sticky could alter this trend.

Signs of an increase in inflation could shift expectations more towards a smaller, 25 basis point cut in the coming month. Traders are pricing in a 68% chance for a 25 bps cut, and a 32% chance for a 50 bps cut, CME Fedwatch showed.

Gross domestic product data released on Thursday showed the U.S. economy grew more than initially estimated in the second quarter. Other data showed a slightly bigger than expected dip in jobless claims.

Dell lifts annual forecasts

In the corporate sector, Dell (NYSE:DELL) is set to gain around 3% premarket after lifting its annual forecasts.

Elsewhere, Ulta Beauty (NASDAQ:ULTA) stock slumped around 7% premarket after it cut its annual sales and profit forecasts, hurt by slowing demand for higher-priced cosmetics and fragrances at its stores.

Athletic apparel retailer Lululemon Athletica (NASDAQ:LULU) gained 4% premarket on better-than-expected earnings, even as it cut its annual sales and profit forecasts, as demand slowed in North America amid selective consumer spending.

Intel (NASDAQ:INTC) will also be in the spotlight after Bloomberg reported that the tech giant is considering splitting off its foundry business and scrapping plans for new factories, as it tries to weather a sharp slowdown.

(Ambar Warrick contributed to this article.)

This article first appeared in Investing.com