Stock Futures Dip Ahead of Key Inflation Data as Fed Rate Cut Bets Rise
US stock futures retreated from record highs as investors braced for the July PCE inflation report, the Federal Reserve's preferred gauge. Dow and S&P 500 futures fell 0.4%, while Nasdaq futures led declines with a 0.5% drop.
The market pullback follows Thursday's rally that pushed major indices to new peaks, fueled by economic resilience signals. Attention now shifts to the 8:30 a.m. ET PCE release, which could cement expectations for a September rate cut after Fed Chair Powell's dovish Jackson Hole remarks.
Central bankers face mounting pressure to balance softening labor indicators against persistent inflation, exacerbated by incoming tariffs. The policy dilemma comes amid political turbulence surrounding Fed Governor Lisa Cook's position.
