U.S. Stock Futures Retreat Ahead of PCE Inflation Data

U.S. stock index futures slipped on Friday evening, retreating from recent record highs as investors awaited key inflation data for more clarity on the Federal Reserve’s interest rate plans.

• Dow Jones Futures: -155 points (-0.3%)
• S&P 500 Futures: -18 points (-0.3%)
• Nasdaq 100 Futures: -108 points (-0.5%)

August monthly gains so far:

• Dow Jones (30 stocks): +3.4%
• S&P 500: +2.6%
• Nasdaq: +2.8%

Focus on PCE price index:

• Investors await U.S. personal consumption expenditures (PCE) data, the Fed’s preferred inflation gauge.
• Core PCE expectation: 0.3% MoM, 2.9% YoY (highest in five months).
• Markets are closely monitoring for signs of tariff-driven inflation from President Trump’s recent levies.
• Implication: Sticky inflation could reduce expectations for Fed rate cuts, which have been anticipated following Powell’s comments on labor market cooling.

Corporate movers:

• Dell Technologies (DELL): Fell on weak current-quarter guidance despite strong earnings.
• Marvell Technology (MRVL): Dropped sharply after disappointing guidance.
• Autodesk (ADSK): Jumped 10% following strong quarterly earnings.
• Ulta Beauty (ULTA), Ambarella (AMBA), Affirm (AFRM): Gained strongly.

Summary: Markets paused after a strong August rally, with investors focused on PCE inflation and labor data to gauge whether the Fed will proceed with rate cuts amid tariff-driven inflation risks.