US stock futures inch lower, PCE inflation test looms this week By Investing.com

Investing.com– U.S. stock index futures fell slightly in evening deals on Sunday after fears of high interest rates saw volatile swings on Wall Street, with focus this week turning to key PCE inflation data for more cues on rates. 

Trading volumes were muted ahead of the Memorial Day holiday on Monday.

fell 0.1% to 5,316.25 points, while fell 0.2% to 18,837.50 points by 19:53 ET (23:3 GMT). fell 0.1% to 39,122.0 points. 

PCE inflation awaited for more rate cues

data- which is the Federal Reserve’s preferred inflation gauge- is due this Friday. 

While the reading is expected to show some cooling in personal spending and consumption, it also comes after a string of warnings from the Fed that sticky inflation will delay any potential interest rate cuts this year. 

These warnings saw investors steadily price out expectations for a rate cut in September, which was initially pegged as the point when the Fed will begin loosening policy. The tool now shows investors pricing in a greater chance that the Fed will keep rates steady in September.

Wall Street sees increased volatility near record highs

Wall Street indexes clocked some record highs last week on support from positive earnings, particularly from market darling NVIDIA Corporation (NASDAQ:).

This helped the tech-heavy also clock a record-high close on Friday. It also marked some gains last week. 

But most other stock sectors fell, with the and seeing a mixed weekly performance. 

While the S&P ended last week largely flat, the Dow, which is seen as more economically sensitive, fell more than 2%. 

The S&P 500 ended up 0.7% at 5,304.72 points on Friday, while the Nasdaq closed up 1.1% at a record high of 16,920.79 points. The Dow ended flat at 39,069.59 points.