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Futures edge higher ahead of key inflation data

KEY POINTS:

  • Futures up: Dow 0.51%, S&P 0.64%, Nasdaq 0.60%


U.S. stock index futures rose on Friday ahead of key inflation data in a tumultuous month marked by heavy losses on concerns of an economic downturn fueled by the Federal Reserve's aggressive push to curb soaring prices.


All eyes will be on the core personal consumption expenditure price index for August, a closely watched metric by the Fed to gauge spending patterns amid rising price pressures.

It is seen rising 0.5% compared to a 0.1% increase in July and is due at 8.30 a.m. ET.

Investors will also keenly listen to commentaries from Fed Vice Chair Lael Brainard, Governor Michelle Bowman, Richmond President Thomas Barkin and New York President John Williams for further clues on the central bank's aggressive monetary policy.

The U.S. central bank's ultra-hawkish stance on interest rate hikes have sharply affected market sentiment for risk-taking, with all the three major indexes now in bear market and set for their third straight quarterly decline.


The Dow Jones Industrial Average DDJI was set for its worst month since pandemic lows. The S&P 500 SPX has slumped nearly 8% so far in September, testing its lowest level since November 2020, while the Nasdaq IXIC has lost over 9% during the month and tested its lowest level in two years.


At 6:49 a.m. ET, Dow e-minis YM1! were up 150 points, or 0.51%, S&P 500 e-minis ES1! were up 23.5 points, or 0.64%, and Nasdaq 100 e-minis NQ1! were up 67.25 points, or 0.6%.

Nike Inc NKE slid 10% in premarket trading after the world's largest sportswear marker warned that gross margins would remain under pressure this year due to ramped up discounts and a rapidly strengthening dollar.

Shares of rate-sensitive Tesla Inc TSLA, Apple Inc AAPL, Amazon.com AMZN, Meta Platforms META, Alphabet Inc GOOG and Microsoft Corp MSFT were up a little less than 1% each, as the yield on the U.S. 10-year Treasury note (US10YT=RR) slipped to a one-week low of 3.682%


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