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Futures off: Dow 0.04%, S&P 500 0.06%, Nasdaq 0.18%

Sept 27 (Reuters) - U.S. stock index futures slipped on

Friday, as investors exercised caution ahead of a crucial

inflation report which could sway expectations on the size of

upcoming interest rate cuts by the Federal Reserve.

A Commerce Department report, due at 8:30 a.m. ET, is

expected to show the Personal Consumption Expenditure Index -

the Fed's preferred inflation gauge - rose by 2.3% in August,

according to economists polled by Reuters, down from 2.5% the

month before.

Price pressures have moved closer to the central bank's 2%

target, giving the Fed enough room to kick off its easing cycle

with a 50 basis point rate cut last week. Its focus now will be

more on ensuring that there is no spike in unemployment.

"Even in the case of a small deviation from consensus, the

recent shift in the Fed's focus to the employment side of its

mandate means markets are less sensitive to inflation news,"

strategists at ING Bank said.

Data through the week points to a still resilient economy

overall, leaving traders uncertain about the Fed's next move.

Odds that the central bank will undertake another outsized move

at its upcoming November meeting stand at 51.4%, as per the CME

Group's FedWatch Tool. Those for a 25 bps reduction stand at

48.6%.

At 05:23 a.m. ET, Dow E-minis were down 15 points,

or 0.04% , S&P 500 E-minis were down 3.5 points, or

0.06% and Nasdaq 100 E-minis were down 36.75 points, or

0.18%.

Also on tap is a final September estimate on consumer

sentiment by the University of Michigan and remarks from Fed

Governor Michelle Bowman.

Late on Thursday, Fed Governor Lisa Cook said the central

bank's rare move earlier this month could address increased

"downside risks" to employment.

Wall Street's main indexes ended higher in the previous

session, with the S&P 500 closing at its highest levels

on record after an upbeat forecast from Micron

invigorated optimism around artificial intelligence. The chip

maker slipped 0.6% in premarket trading.

The benchmark index along with the blue-chip Dow and

tech-heavy Nasdaq are on track for their third-straight week of

gains.

Among other stocks, Bristol Myers Squibb ( BMY ) surged 6.2%

after the U.S. FDA approved its schizophrenia drug, providing

patients with a treatment option that reduces symptoms of the

mental disorder without common side effects.

Costco Wholesale ( COST ) dropped 1.4% after missing market

expectations for fourth-quarter revenue, hurt by cautious

consumer spending on pricier items at its membership-only stores

and lower gasoline prices.

U.S.-listed shares of Chinese firms such as Alibaba

rose 1.9%, PDD Holdings ( PDD ) climbed 4.1% and Li Auto

advanced 2.3%, tracking domestic stocks after China's central

bank lowered interest rates and injected liquidity into the

banking system, in its latest stimulus move.

Miners such as Albemarle added 3% and U.S.-listed

shares of BHP rose 1% after a report showed top Chinese

cities Shanghai and Shenzhen are planning to lift key remaining

restrictions on home purchases to attract potential buyers.