U.S. Stock Futures Rise as PCE Index Signals Moderating Inflation

U.S. stock index futures surged on Friday following an inflation report that indicated easing inflation in the economy. The Personal Consumption Expenditure (PCE) index, a key inflation measure for the Federal Reserve, rose slightly below expectations. Major stock futures saw modest gains following the report.

U.S. stock index futures moved higher on Friday after an inflation reading supported the narrative of moderating inflation in the economy. The Personal Consumption Expenditure (PCE) index, the Fed's preferred inflation measure, rose 2.2% in August on an annual basis, compared with estimates of 2.3%, as per economists polled by Reuters. On a monthly basis, it rose 0.1%.

Excluding volatile food and energy components, the core PCE rose 2.7% last month, compared with expectations of 2.7%. At 8:31 a.m. ET, Dow E-minis were up 49 points, or 0.12%, S&P 500 E-minis were up 5.75 points, or 0.1% and Nasdaq 100 E-minis were up 31.5 points, or 0.15%.

The market responded positively to the PCE data, indicating that inflation may be moderating, easing concerns about aggressive monetary policy from the Federal Reserve. Investors seemed optimistic, with futures of major indices posting gains shortly after the report's release.

(With inputs from agencies.)