US stock futures inch higher with inflation cues on tap

Investing.com-- U.S. stock index futures rose slightly in evening deals on Sunday with Wall Street indexes remaining near record highs as investors looked to key inflation data this week for more cues on interest rates.

Wall Street was reeling from some stronger than expected purchasing managers index readings from last week, which pushed up concerns that the U.S. economy remained robust, giving the Federal Reserve more headroom to keep rates high.

S&P 500 Futures rose 0.1% to 5,538.75 points, while Nasdaq 100 Futures rose 0.2% to 20,020.50 points by 19:20 ET (23:20 GMT). Dow Jones Futures steadied at 39,582.0 points.

PCE inflation due this week 

Markets were focused chiefly on PCE inflation data, which is due this Friday. 

The reading is the Fed’s preferred inflation gauge, and is likely to tie into the central bank’s stance on interest rate cuts.

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

Expectations of an eventual lowering in interest rates had driven Wall Street indexes to record highs through June, even as the Fed signaled that sticky inflation and a strong economy kept chances of such a scenario slim. 

Wall Street also appeared due for some profit-taking, especially in the technology sector, after a stellar run-up this year.

The S&P 500 fell 0.2% to 5,464.62 points on Friday, while the NASDAQ Composite fell 0.2% to 17,693.38 points. The Dow Jones Industrial Average was flat at 39,150.33 points. 

Fedex, Micron earnings on tap 

Some key quarterly earning prints were also on tap this week.

Delivery and logistics firm FedEx Corporation (NYSE:FDX), whose earnings are also viewed as a bellwether for global economic activity, is set to report its earnings for the quarter ended May on Tuesday. 

Memory chip maker Micron Technology Inc (NASDAQ:MU) is set to report its quarterly earnings on Wednesday, after forecasting a major demand spike from the fast growing artificial intelligence industry. 

Sports apparel maker Nike Inc (NYSE:NKE) and pharmaceutical retailer Walgreens Boots Alliance Inc (NASDAQ:WBA) are set to report earnings on Thursday.