Investors Eye Crucial Inflation Report: US Stock Futures Dip

U.S. stock index futures slipped on Friday as investors awaited a key inflation report. The report, due from the Commerce Department, is expected to influence expectations on future interest rate cuts by the Federal Reserve. The Fed's focus has recently shifted to employment, reducing market sensitivity to inflation news.

U.S. stock index futures slipped on Friday, reflecting investor caution ahead of a pivotal inflation report that could shape expectations for future Federal Reserve interest rate cuts.

The Commerce Department report, expected at 8:30 a.m. ET, is predicted to show a 2.3% increase in the Personal Consumption Expenditure Index for August, compared to 2.5% in July. This follows the Fed's easing cycle kickoff with a 50 basis point rate cut last week, shifting its focus now to controlling unemployment rates.

Although data indicates a resilient economy, market watchers remain uncertain about the Fed's next steps, with odds of a significant rate cut in November currently split. Meanwhile, Wall Street indexes showed mixed performance in premarket trading, and stocks like Bristol Myers Squibb and Costco saw notable movements.

(With inputs from agencies.)