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

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AT&T ( T ) down after reporting data leak

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Futures: S&P up 0.07%, Nasdaq up 0.13%, Dow down 0.01%

(Updated at 8:31 a.m. ET/ 1231 GMT)

By Shristi Achar A and Shashwat Chauhan

April 1 (Reuters) -

The S&P 500 and the Nasdaq were set to open slightly higher

on Monday after the latest inflation print showing moderating

consumer prices bolstered 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.

Market participants, however, expect the central bank to

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

"There hasn't been a whole lot of movement around those

three (expected cuts). The market keeps waiting for data, keeps

waiting for the Fed to say things, but you're getting some

degree of mixed messages," said Thomas Martin, senior portfolio

manager at GLOBALT Investments.

"We're in the camp that they won't (cut) in June, but

that they will probably do three (sometimes) this year."

Most megacap growth stocks, which stand to benefit from

lower interest rates, edged up in premarket trading, with

Microsoft ( MSFT ), Nvidia ( NVDA ) and Amazon.com ( AMZN ) up

between 0.2% and 0.5%.

That indicates a positive 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 the 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.

The yield on the 10-year benchmark U.S. Treasury note

, however, rose to 4.237%, weighing on equities.

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

report for March is expected at 9:45 a.m. ET and the ISM

manufacturing PMI report for March is due at 10:00 a.m. ET.

At 8:31 a.m. ET, Dow e-minis were down 4

points, or 0.01%, S&P 500 e-minis were up 3.5 points, or

0.07%, and Nasdaq 100 e-minis were up 23.25 points, or

0.13%.

Most chipmakers also gained, with Micron Technology ( MU )

, and Marvell Technology ( MRVL ) up 1.3% and 0.7%,

respectively.

Spirit Airlines ( SAVE ) gained 3.3% 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 2.6% after the wireless carrier said it was

investigating a data leak that could have impacted nearly 73

million current and former accounts.

(Reporting by Shristi Achar A and Shashwat Chauhan in

Bengaluru; Editing by Anil D'Silva)