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PCE data shows inflation rose 2.5% in July

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Marvell ( MRVL ) jumps after forecasting Q3 results above estimates

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Ulta Beauty ( ULTA ) tumbles following annual forecast trim

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Dell gains after raising annual results forecast

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Futures up: Dow 0.19%, S&P 500 0.45%, Nasdaq 0.84%

(Updated at 08:43 a.m. ET/ 1243 GMT)

By Johann M Cherian and Purvi Agarwal

Aug 30 (Reuters) -

Wall Street's main indexes were set for a higher start on

Friday after a key inflation report reiterated that price

pressures were moderating, cementing bets for an interest-rate

cut at the Federal Reserve's upcoming meeting in September.

The Personal Consumption Expenditure index, the central

bank's preferred inflation measure, rose 2.5% in July on an

annual basis compared to an estimate of 2.6%, according to

economists polled by Reuters. On a monthly basis, it rose 0.2%

as expected.

Among rate-sensitive megacaps, Alphabet and

Meta gained 0.8% and 0.6%, respectively, while Tesla

added 1.2% in premarket trading.

Friday's PCE report is the last before the Federal

Reserve's September meeting and follows Fed Chair Jerome

Powell's comments last week expressing support for an imminent

policy adjustment.

"Powell's speech at Jackson Hole reiterated several times

that we're approaching our desired target. Nothing here is going

to cause me to change anything," said Andre Bakhos, managing

member at Ingenium Analytics.

"I would vote 25 bps because it's been going in the

direction the Fed has been targeting and the market has factored

all of this in."

Odds of a 25-basis-point reduction stood at 69.5%,

according to the CME Group's FedWatch Tool, while those of a

50-bps reduction are at 30.5%.

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

investor nerves.

At 08:43 a.m., Dow E-minis were up 79 points, or

0.19%, S&P 500 E-minis were up 25.25 points, or 0.45%,

Nasdaq 100 E-minis were up 162.5 points, or 0.84%.

The tech-focused Nasdaq and the S&P 500

closed lower in the previous session after Nvidia ( NVDA )

failed to match investors' sky-high expectations despite upbeat

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

was up 0.9% 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.

Marvell Technology ( MRVL ) forecast third-quarter results

above Street estimates, sending the chipmaker's shares up 11.2%.

Dell Technologies ( DELL ) advanced 4.87% after lifting its

annual revenue and profit forecasts, buoyed by demand for its

AI-optimized servers.

Lululemon Athletica ( LULU ) gained 3.86% 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 August later in the day.

Trading volumes are expected to thin ahead of the extended

weekend due to the Labor Day holiday.