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Deere falls on annual forecast cut

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Cisco ( CSCO ) gains after upbeat Q4 forecast

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Walmart ( WMT ) rises on annual forecast raise

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Futures up: Dow 0.07%, S&P 0.07%, Nasdaq 0.14%

(Updated at 07:11 a.m. ET/ 1111 GMT)

By Bansari Mayur Kamdar and Shristi Achar A

May 16 (Reuters) - U.S. stock index futures inched

higher on Thursday, a day after Wall Street hit all-time highs

as a tepid inflation report bolstered hopes of interest-rate

cuts.

All three major indexes notched record closes after a

smaller-than-expected rise in consumer inflation fueled optimism

that inflation was easing after three months of

higher-than-expected numbers.

The market is back to betting on two quarter-point interest

rate cuts from the Federal Reserve this year, with traders

seeing a 72.6% chance of the first one in September, according

to the CME FedWatch Tool.

The Dow is on track to cross the 40,000-mark for the

first time, marking the blue-chip index's fastest 10,000-point

climb, powered by strong quarterly results and rising bets of

rate cuts.

"While the path to disinflation was never going to be

without bumps, this latest indicator suggests things are moving

in favor of Federal Reserve interest rate cuts this year,"

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown,

said in a note.

Markets will now shift their focus to several Fed officials

expected to speak through the day, including Thomas Barkin,

Loretta Mester, Raphael Bostic, Patrick Harker and Michael Barr.

Investors also await data on initial claims for state

unemployment benefits due at 8:30 a.m. ET for cues on the

strength of the labor market.

Among earnings updates, Walmart ( WMT ) advanced 5.6% in

premarket trading after the retail giant raised its fiscal 2025

sales and profit forecast, betting on easing inflation to

further boost demand for essentials.

Deere fell 5.3% after farm equipment maker trimmed

its annual profit forecast for the second time.

Cisco Systems ( CSCO ) rose 3.4% after the network equipment

maker forecast fourth-quarter revenue above Wall Street

expectations.

At 07:11 a.m. ET, Dow E-minis were up 27 points, or

0.07%, S&P 500 E-minis were up 3.75 points, or 0.07%,

and Nasdaq 100 E-minis were up 26.25 points, or 0.14%

Most megacap growth and technology stocks climbed, with

Nvidia ( NVDA ) leading gains.

U.S.-listed shares of Chubb jumped 8.3% after Warren

Buffett's Berkshire Hathaway ( BRK/A ) revealed a stake of 25.9

million shares worth $6.7 billion in the insurer.

Popular meme stocks GameStop ( GME ) and AMC Entertainment ( AMC )

slid more than 15% each.

They were set to extend Wednesday's losses that followed a

two-day rally sparked by the return of "Roaring Kitty" Keith

Gill, the central figure in the 2021 meme stock frenzy.