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UPS to become USPS' primary air cargo provider; shares up

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AT&T ( T ) down after leaked data impacts about 73 mln customers

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Futures up: Dow 0.30%, S&P 0.34%, Nasdaq 0.47%

(Updated at 7:10 a.m. ET/ 1110 GMT)

By Shristi Achar A and Shashwat Chauhan

April 1 (Reuters) -

Futures tracking Wall Street's main stock indexes rose on

Monday after the latest inflation print showed moderating

consumer prices, bolstering hopes of an early interest rate cut

by the Federal Reserve.

The Commerce Department's data on Friday showed the personal

consumption expenditures (PCE) price index - the Fed's preferred

inflation gauge - rose 0.3% in February, compared with the

estimates of a 0.4% increase, according to economists polled by

Reuters.

The report strengthened rate-cut bets, with money markets

pricing in a 66% chance of at least a 25 basis point cut in

June, compared with 55% a day before the data was released,

according to the CME Group's FedWatch tool.

Fed Chair Jerome Powell said on Friday that the latest U.S.

inflation data was "along the lines of what we would like to

see" - comments that appeared to keep the central bank's

baseline for interest rate cuts this year intact.

"If activity holds up, the Fed might deliver three rate cuts

this year. But a further softening in labor markets has us

expecting five rate cuts this year," Citigroup analysts wrote in

a note.

Market participants, however, expect the central bank to

stand pat on rates at the upcoming policy meeting in May.

Most megacap growth stocks, which stand to benefit from

lower interest rates, rose in premarket trading, with Microsoft ( MSFT )

, Nvidia ( NVDA ) and Tesla up around 0.6%

each.

That indicates a solid start to the second quarter, after

the benchmark S&P 500 rose 10.16% in the first three

months of the year, its biggest gain since 2019. As of last

close, the blue-chip Dow sits less than 1% away from

breaching the 40,000 level for the first time.

The gains on Wall Street have been powered by optimism

around artificial intelligence, robust earnings and hopes of a

soft landing - where inflation moderates without causing an

economic slowdown.

On the data front, the S&P Global's final manufacturing PMI

report is expected at 9:45 a.m. ET and the ISM manufacturing PMI

report is due at 10:00 a.m. ET.

At 7:10 a.m. ET, Dow e-minis were up 119 points, or

0.3%, S&P 500 e-minis were up 18.25 points, or 0.34%,

and Nasdaq 100 e-minis were up 86.25 points, or 0.47%.

Most chipmakers also gained, with Micron Technology ( MU )

, Advanced Micro Devices ( AMD ) and Marvell Technology ( MRVL )

up between 0.7% and 1.2%.

Spirit Airlines ( SAVE ) gained 2.9% after the budget

carrier said it would get a monthly credit from International

Aero Engines through the end of 2024 as compensation for not

being able to operate its jets with engine issues.

United Parcel Service ( UPS ) added 1.9% after the world's

largest parcel delivery company said it would become the United

States Postal Service's (USPS) primary air cargo provider,

replacing rival FedEx ( FDX ).

AT&T ( T ) fell 2.7% after the wireless carrier said it was

investigating a data leak that could have impacted nearly 73

million current and former accounts.