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Futures up: Dow 0.12%, S&P 500 0.05%, Nasdaq 0.02%

Aug 12 (Reuters) - U.S. stock index futures were trading

flat on Tuesday, as caution prevailed ahead of a key inflation

report that could sway expectations over the Federal Reserve's

next monetary policy move.

There was also some relief that the U.S. and China extended

their tariff truce until November 10, staving off triple-digit

duties on each other's goods.

The focus is now on the impact of trade uncertainty on

inflation, which has complicated the Fed's decision on

interest-rate cuts even as U.S. companies look to pass on higher

cost to consumers.

A Labor Department report at 8:30 a.m. ET is expected to

show prices increased moderately in July, but economists are

anticipating a measure of underlying inflation to reflect its

largest gain in six months.

The report could help gauge the Fed's move when it meets in

September, with traders now pricing an 88% chance of a 25 basis

points interest-rate cut, according to data compiled by LSEG.

"This report will be an important one for the Fed, in part

because of the unexpectedly weak jobs report earlier this

month," said Jim Reid, global head of macro and thematic

research at Deutsche Bank, said in a note.

"A downside surprise in today's CPI print would strengthen

rate cut expectations, whereas an in-line or stronger print

would require further data to provide clarity on that."

The data will come at a time when there are growing concerns

over the quality of economic data, weeks after President Donald

Trump fired the head of the Bureau of Labor Statistics following

downward revisions to previous months' nonfarm payrolls counts.

At 05:37 a.m. ET, Dow E-minis were up 54 points, or

0.12%, S&P 500 E-minis were up 3.5 points, or 0.05% and

Nasdaq 100 E-minis were up 5.25 points, or 0.02%.

Tuesday's data could also test a rally in U.S. stocks that

have touched record highs, boosted by better-than-expected

earnings from technology majors, a detente between the U.S. and

its top trade partners and on expectations of rate cuts.

Markets are monitoring developments around Trump's nominee

E.J. Antoni to the Bureau of Labor Statistics commissioner post

and potential candidates for the Fed's top job.

Among single stocks, Intel ( INTC ) rose 3.3% in premarket

trading as Trump praised CEO Lip-Bu Tan following their meeting

on Monday, days after seeking Tan's resignation.

Palo Alto Networks ( PANW ) gained 1.8% after brokerage

Piper Sandler raised its rating on the cybersecurity stock to

'overweight' from 'neutral'.

Hanesbrands ( HBI ) soared 27.3% after a report said

Canada's Gildan Activewear ( GIL ) is nearing a deal to acquire

the U.S. innerwear-maker for about $5 billion, including debt.

U.S.-listed shares of On Holding climbed 10.7%

after the sportswear maker raised its annual sales forecast.

Earnings reports from Venture Global and Circle Internet ( CRCL )

are also due before the bell.