US pre-open: Futures rise ahead of PCE, Nike shares plummet

Stock futures on Wall Street were showing small gains in pre-market trade with both the S&P 500 and Nasdaq expected to test their recent record highs ahead of some key inflation data to be released before the opening bell.

The Dow was rising just 0.04% early on, but the S&P 500 and Nasdaq pushed 0.3% ahead. On Thursday, the latter two indices closed within a whisker of their respective all-time closing highs reached last week.

The personal consumption expenditures (PCE) index, due out at 0830 EDT, is expected to show that the annual rate of core PCE inflation eased to 2.6% in May from 2.8% the month before.

“US core PCE price index is the Federal Reserve’s preferred gauge to measure inflation and this new round of data will play a crucial role in the central bank’s decision-making as it looks at when to ease monetary policy," said Russ Mould, investment director at AJ Bell.

“The market is likely to react positively if inflation comes in as expected as it would boost confidence that we’re only a stone’s throw away from the Fed cutting rates.”

Speaking on Thursday, the head of the Atlanta Fed, Raphael Bostic, said he still believes one rate cut this year is likely. In a statement on the Atlanta Fed website, he said: “Taking all the circumstances into account, I continue to believe conditions will likely call for a cut in the federal funds rate in the fourth quarter of the year."

Also on the agenda on Friday will be personal income and spending figures for May, also due at 0830 EDT, following by the University of Michigan consumer sentiment index at 1000 EDT.

Nike futures were down 14% ahead of the bell after a disappointing set of quarterly results released on Thursday evening, in which it slashed its sales guidance for the fiscal year ending 2025. The sporting goods giant said sales are now predicted to be down in the mid-single-digit percentage range, surprising the market which had pencilled in growth of around 1%.