US futures shift on hold for Fed-favored PCE inflation print

US stocks rallied before the bell on Friday as investors bid time ahead of an inflation report seen as crucial to the Federal Reserve’s next rate cut decision.

S&P 500 futures ( ES=F ) were little changed following a third record close this week, while Dow Jones Industrial Average futures ( YM=F ) were flat. Contracts on the Nasdaq 100 (NQ=F) fell 0.2%.

Indicators are still on track for a weekly win as confidence in the economy has returned to the market. A strong GDP reading cemented the growing belief that the Fed may land on a “soft landing” as it embarks on a rate-cutting campaign. But investors are still on the lookout for new data as they debate the pace of easing.

Read more: What Fed rate cuts mean for bank accounts, CDs, loans and credit cards

August’s reading of the personal consumption expenditures (PCE) index, the Fed’s favored inflation gauge, is considered crucial to these calculations. Although policymakers have shifted their focus to the labor market, they have yet to reach their 2% inflation target.

Analysts expect PCE printing to come in at 2.3% year-over-year, down from 2.5% for July, when it is released at 8:30 am ET. That would support the Fed’s decision to cut rates by 50 basis points last week and provide room for another jumbo rate cut in November. But any sign of sticky price pressures could reignite concerns that policymakers have let off the brakes too soon.

Elsewhere, China added to its stream of stimulus measures, once again boosting markets. Mainland stocks posted their biggest weekly gain since 2008 and luxury stocks are poised for their best week in years as hopes for Chinese demand rise. Meanwhile, shares of Alibaba ( BABA , 9988.HK ), JD.com ( JD , 9618.HK ) and Meituan ( 3690.HK , MPNGY ) rose on the buying spree.

In other individual stock moves, shares of Costco ( COST ) fell in premarket trading after the wholesale giant’s earnings disappointed Wall Street.