Market Caution: U.S. Futures Fall Amid Inflation Worries and Tech Slump

U.S. stock market futures fell early Friday as investors waited with bated breath for a critical inflation report capable of swaying the Federal Reserve's decision on interest rates this September. The tech sector led the decline, with Dell and Marvell seeing substantial losses due to disappointing earnings forecasts.

Nvidia also experienced a premarket drop, despite its robust performance overall, as CEO Jensen Huang reassured stakeholders about sustained demand for AI infrastructure. This tempered market anxiety, buoying other major tech stocks, which helped the S&P 500 and Dow achieve record closes the day before.

The spotlight now shifts to the Fed's favored inflation gauge, the Personal Consumption Expenditures index, expected to provide important insights at 8:30 a.m. ET. A steady rate of 2.6% is expected for July, while core inflation is anticipated to rise by 2.9%. Amid these developments, traders largely anticipate a rate cut in September, fueled by dovish remarks from Fed Chair Jerome Powell.

(With inputs from agencies.)