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Futures up: Dow 0.16%, S&P 500 0.38%, Nasdaq 0.65%

Aug 30 (Reuters) - U.S. stock index futures traded

higher on Friday as investors focused on a crucial inflation

report that could influence expectations about the extent of the

Federal Reserve's interest-rate cuts this year.

Global markets are nearing the end of a tumultuous month for

riskier assets, after signs of a sudden moderation in the labor

market sparked fears of a quicker-than-expected slowdown in the

world's largest economy in early August. The influence of the

Japanese yen carry trade worsened the rout.

Risk-taking has improved since then, with the Dow at

a record high and on track for monthly gains as subsequent data,

including Thursday's upward revision to economic growth, soothed

jumpy investors.

Focus now shifts to July's Personal Consumption Expenditure

data, the Fed's preferred inflation gauge, due at 8:30 a.m. E.T.

- the last PCE report before the central bank's highly

anticipated September meeting.

Economists polled by Reuters forecast a marginal rise to

2.6% on an annual basis, from the previous month's 2.5%.

Following Chair Jerome Powell's support last week for

imminent policy adjustment, optimism around an interest-rate cut

in September remains strong. Odds of a 25-basis-point reduction

are at 65.5%, while those for a 50-bps reduction are at 34.5%,

according to the CME Group's FedWatch Tool.

At 05:47 a.m. ET, Dow E-minis were up 65 points, or

0.16%, S&P 500 E-minis were up 21.25 points, or 0.38%,

Nasdaq 100 E-minis were up 126.5 points, or 0.65%.

The tech-focused Nasdaq and the S&P 500

closed lower in the previous session after Nvidia ( NVDA )

failed to match investors' lofty expectations despite upbeat

results and a broadly in-line forecast. The AI-chip bellwether

was up 1.7% in premarket trading after a 6.4% drop in the

previous session.

The benchmark S&P 500 is close to an all-time high, poised

for a monthly gain of 1.2%, while the Nasdaq is down 0.47% in

August.

Rate-sensitive megacaps such as Alphabet and

Microsoft ( MSFT ) added 0.6% and 0.8%, respectively, while

Tesla rose more than 1.4%, supported by a dip in

Treasury yields.

Among others, Marvell Technology ( MRVL ) forecast

third-quarter results above Street estimates, sending the

chipmaker's shares up 9.2%.

Dell Technologies ( DELL ) advanced 6% after lifting its

annual revenue and profit forecasts, buoyed by demand for its

AI-optimized servers.

Lululemon Athletica ( LULU ) gained 4.4% after posting a

beat on second-quarter profit, while Ulta Beauty ( ULTA ) slid

6.2% after it trimmed its annual results forecasts due to

slowing demand.

Investors will also parse the University of Michigan's final

reading on consumer sentiment for the month of August later in

the day.

Trading volumes are expected to thin ahead of the extended

weekend due to the Labor Day holiday.