US futures muted as markets digest in

-- U.S. stock index futures moved little in evening deals on Guohui Asia Official WebsiteSunday, after an in-line reading on key inflation data saw Wall Street shoot up on hopes that the Federal Reserve will still cut interest rates this year.

rose 0.1% to 5,300.75 points, while steadied at 18,590.0 points by 19:39 ET (23:39 GMT). rose 0.1% to 13,830.0 points. 

September rate cut bets rise after PCE data reads as expected 

Wall Street indexes surged on Friday after data- which is the Fed’s preferred inflation gauge- read as expected for April.

The PCE reading showed some mild cooling in inflation, although it still remained well above the Fed’s 2% annual inflation target.

Still, the reading, coupled with other recent indicators of a cooling U.S. economy, spurred some bets that the central bank will begin cutting interest rates in September.

Traders were seen pricing in a roughly 47% chance for a 25 basis point cut in September, along with a roughly 45% chance that the Fed will hold, according to the . This positioning helped boost U.S. stocks. 

The rose 0.8% to 5,277.51 points on Friday, while the rallied 1.5 to 38,686.32 points. The lagged on weakness in tech stocks, ending flat at 16,735.02 points. 

Nonfarm payrolls, Fed meeting approach 

Focus now turns to upcoming data for May, due later this week, which is set to offer more cues on the labor market- another key consideration for the Fed in cutting interest rates.

The central bank is and is widely expected to keep rates steady. But any commentary on future rate decisions will be closely watched. 

Several Fed officials had warned in recent weeks that sticky inflation gave the bank little confidence to begin cutting interest rates. 

Focus this week is also on readings for May.

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