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

0.09%

Aug 14 (Reuters) - U.S. stock index futures were muted

on Thursday following a strong run on Wall Street this week and

investors awaited fresh economic data to gauge the Federal

Reserve's monetary policy verdict next month.

Data reflecting labor market weakness has strengthened

expectations that the central bank will potentially lower

interest rates next month, despite another report suggesting

underlying price pressures are on the rise.

The expectations for a dovish Fed encouraged investors to

lap up riskier equities, sending the benchmark S&P 500

and tech-heavy Nasdaq to record highs in the previous

two sessions, and putting the blue-chip Dow within

striking distance of an all-time high.

Traders are fully pricing in a 25-basis-point interest rate

cut by the central bank in September, according to the CME

FedWatch tool, and expect cuts of a similar size in October and

December.

Analysts are not so sure.

"The market is too complacent about the apparent certainty

the Fed will cut next month, especially with inflation having

been above target for 53 months running, and clearly moving in

the wrong direction," said Michael Brown, senior research

strategist at Pepperstone.

A report also showed San Francisco Fed President Mary Daly

pushed back against the need for a 50-basis-point interest rate

cut next month, a day after Treasury Secretary Scott Bessent

said an aggressive half-point cut was possible.

At 05:24 a.m. ET, Dow E-minis were up 8 points, or

0.02%, S&P 500 E-minis were down 3 points, or 0.05%, and

Nasdaq 100 E-minis were down 21.25 points, or 0.09%.

Focus is now on a string of data due at 8:30 a.m. ET,

including weekly jobless claims and Producer Price Index for the

month of July, at a time when markets are also concerned about

the quality of economic data following budget and staffing cuts.

Some of the components of the producer inflation report

feeds into the Fed's preferred inflation gauge - the Personal

Consumption Expenditures Price Index.

Wall Street's recovery from April lows has also elevated

valuations of the S&P 500 beyond long-term averages, aided by

better-than-expected earnings from megacap companies and more

clarity on trade deals.

"I retain my bullish equity bias. Frankly, it's tough not to

- earnings growth is impressive; the tone on trade is becoming

much softer; the economy remains resilient; and, even if that

final point falters, the Fed (has) plenty of room to ease," said

Brown.

Cisco Systems ( CSCO ) forecast first-quarter revenue above

estimates, as the artificial intelligence boom boosted demand

for its networking equipment from cloud customers. Shares were

down 1% in premarket trading.

Birkenstock ( BIRK ) gained 3.5% after the sandal maker beat

quarterly expectations. Quarterly reports from Deere and

Tapestry are also due before the bell.

Meanwhile, a Reuters report said President Donald Trump's

administration is likely weeks away from announcing the results

of a probe into pharmaceutical imports and new sector-specific

U.S. tariffs.

Healthcare companies such as Eli Lilly ( LLY ) and Merck

were little changed. The broader sector has

declined the most on the S&P 500 this year.