US stock futures drift higher; PCE data, Presidential debate in focus By Investing.com

Investing.com– U.S. stock index futures rose slightly in evening deals on Thursday as investors kept to the sidelines ahead of key inflation data that is likely to factor into the outlook for interest rates.

U.S. politics also came into focus, with the first Presidential debate of the 2024 elections, between Democrat and Republican front-runners Joe Biden and Donald Trump set to begin later in the day.

rose 0.1% to 5,552.25 points, while rose 0.2% to 20,087.75 points by 19:07 ET (23:07 GMT). fell 0.1% to 39,510.0 points.

PCE inflation data awaited for more rate cues 

Focus was squarely on data, due on Friday. The reading is the Federal Reserve’s preferred inflation gauge, and is likely to provide more cues on the central bank’s stance on interest rates.

The data is expected to show inflation cooled slightly in May, but remained well above the Fed’s 2% annual target range. 

The reading comes amid some signs of cooling in the U.S. economy, which pushed up hopes that the Fed will cut interest rates this year. A final reading on first quarter showed on Thursday that the U.S. economy grew at a languid pace in the period.

Weekly fell more than expected, while orders also edged lower in May. 

Wall Street edges higher in choppy trade

Signs of a cooling U.S. economy ramped up hopes that the Fed will have some impetus to begin cutting interest rates this year. 

This notion helped Wall Street eke out some gains on Thursday, even as heavyweight chipmaking stocks tumbled on a somewhat middling revenue forecast from Micron Technology Inc (NASDAQ:).

The rose 0.1% to 5,482.87 points. The finished up 0.3% at 17,857.88 points, while the rose 0.1% to 39,164.06 points.

Wall Street indexes were largely rangebound this week, seeing choppy trade and languid volumes as the summer holidays also made for lower trading volumes. While indexes remained close to recent record peaks, markets were on edge over a sharp reversal, especially in the event of a more hawkish outlook for the Fed.

A slew of Fed officials warned this week that sticky inflation will see the bank keep rates high for longer.