Futures tick higher as inflation fears fade
(Reuters) - U.S. stock index futures rose on Friday after inflation data calmed concerns over a possible long-term spike in rising prices, with investors now turning focus to next week's Federal Reserve meeting for more cues on monetary policy.
The S&P 500 had surged to a record high on Thursday as investors scaled back expectations for early policy tightening by the Fed, with May's consumer price data suggesting that a recent spike in inflation was likely to be transitory.
Much of the price surge in May came from items such as commodities and airfares, and it is expected to be temporary.
With recent data also indicating weakness in the labor market, the Fed is widely expected to maintain accommodative policy, which is positive for stocks and other risk-driven assets.
S&P 500 E-minis were up 7.25 points, or 0.17 at 06:36 a.m. ET. Dow E-minis were up 77 points, or 0.22%, while Nasdaq 100 E-minis were up 30.25 points, or 0.22%.
The S&P 500 and the Nasdaq were set for mild weekly gains, as a lack of major catalysts and a summer lull in trading saw them move in a tight range.
But weakness in major industrial stocks saw the Dow Jones set for a weekly loss, amid doubts over whether President Joe Biden's $2.3 trillion infrastructure spending plan would come to pass.
Stocks favored by small-time investors were set to close higher for the week, even as a rally appeared to be running out of steam on Thursday. Most of the so-called "meme" stocks rose in premarket trade.
(Reporting by Ambar Warrick in Bengaluru; Editing by Maju Samuel)
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