(Reuters) - U.S. stock index futures traded higher on Friday as investors focused on a crucial inflation report that could influence expectations about the extent of the Federal Reserve's interest-rate cuts this year.
Global markets are nearing the end of a tumultuous month for riskier assets, after signs of a sudden moderation in the labor market sparked fears of a quicker-than-expected slowdown in the world's largest economy in early August. The influence of the Japanese yen carry trade worsened the rout. Risk-taking has improved since then, with the Dow at a record high and on track for monthly gains as subsequent data, including Thursday's upward revision to economic growth, soothed jumpy investors.
Focus now shifts to July's Personal Consumption Expenditure data, the Fed's preferred inflation gauge, due at 8:30 a.m. E.
T. - the last PCE report before the central bank's highly anticipated September meeting. Economists polled by Reuters forecast a marginal rise to 2.
6% on an annual basis, from the previous month's 2.5%. Following Chair Jerome Powell's support last week for imminent policy adjustment, optimism around an interest-rate cut in September remains strong.
Odds of a 25-basis-point reduction are at 65.5%, while those for a 50-bps reduction are at 34.5%, according to the CME Group's FedWatch Tool.
At 05:47 a.m. ET, Dow E-minis were up 65 points, or 0.
16%, S&P 500 E-minis were up 21.25 points, or 0.38%, Nasdaq 100 E-minis were up 126.
5 points, or 0.65%. The tech-focus.