Wall St eyes higher open as softer PCE data supports rate-pause hopes

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FILE PHOTO:Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo

(Reuters) - U.S. stock index futures extended gains on Friday after data showed a closely-watched measure of inflation was softer-than-expected, keeping alive hopes of a pause in interest rate hikes from the Federal Reserve.

A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed’s preferred inflation gauge, climbed 0.4% in August, against estimates of a 0.5% rise.

Excluding volatile food and energy components, the core PCE price index rose 0.1% in August, compared with estimates of 0.2% advance.

At 8:32 a.m. ET, Dow e-minis were up 181 points, or 0.53%, S&P 500 e-minis were up 27 points, or 0.62%, and Nasdaq 100 e-minis were up 129.25 points, or 0.87%.

Reporting by Shristi Achar A in Bengaluru; Editing by Maju Samuel


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