July 31 (Reuters) - U.S. stock index futures were little

changed on Thursday after a largely in-line inflation reading

fanned hopes that the Federal Reserve may cut interest rates

soon.

A Commerce Department report showed the Personal Consumption

Expenditures Price index (PCE) rose 0.3% in June, in line with

estimates from economists polled by Reuters. Annually, it stood

at 2.6% against estimates of 2.5%.

The core reading increased 0.3%, also in line with

estimates. It rose 2.8% on a year-on-year basis against

estimates of 2.7%.

Separately, the number of Americans filing new applications

for unemployment benefits was at 218,000 for the week of July

26, compared with estimates of 224,000 per economists polled by

Reuters.

At 8:33 a.m. ET, U.S. S&P 500 E-minis were up 57.25

points, or 0.9%, Nasdaq 100 E-minis were up 304.75

points, or 1.29%, Dow E-minis were up 93 points, or

0.21%.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Devika

Syamnath)