Stock Market News: Dow, S&P 500 Set to Open Up Ahead of PCE Inflation Data; Biden, Trump Debate Fallout; Walgreens, Nvidia, Micron, Nike, and More Movers

Investors are now waiting for today’s Personal Consumption Expenditures report. It’s the Federal Reserve’s favored gauge of inflation and could affect the central bank’s forward path on interest rates.

For live coverage and analysis of the PCE report, click here.

U.S. stock futures were rising on Friday as the market neared the end of the first half of the year. Before celebrations of a blistering six months, key inflation data lie in the day ahead that could shift the needle on interest-rate expectations.

Futures for the Dow Jones Industrial Average were inching up 14 points, or less than 0.1% Friday, after the index eked out a 36-point gain on Thursday to finish at 39,164. S&P 500 futures advanced 0.3% with contracts tracking the tech-heavy Nasdaq Composite up 0.4%. The yield on the benchmark 10-year U.S. Treasury note hovered above 4.3%.

The S&P 500 has gained some 15% this year and remains near record levels, closing at its second-highest point ever on Thursday and poised for more gains on Friday if inflation data don’t spoil the party. Last year, the index rose almost 16% over the same period. Meanwhile, the Nasdaq has soared almost 19% since the beginning of January amid a trend of outperformance from technology stocks.

While the market has shown stocks can rise despite generationally high interest rates, the outlook for inflation and Federal Reserve interest-rate policy remains a dominant narrative for markets. The spotlight on Friday falls firmly on the release of the core personal-consumption expenditures (PCE) price index at 8:30 a.m. Eastern time, which is the Fed’s preferred measure of inflation.

“All eyes are keenly trained on this afternoon’s PCE inflation figures. PCE is expected to have cooled, as spectators lean towards the possibility of a September rate cut,” said Sophie Lund-Yates, an analyst at broker Hargreaves Lansdown.

“The political landscape in the region has also become more intense, following a tricky televised debate between President Biden and Donald Trump yesterday, which saw the Republican emerge as the stronger contender, which caused the yield on the U.S. 10-year Treasury note to rebound.”