Futures extend gains after May inflation data By Reuters

(Reuters) – U.S. stock index futures extended gains on Friday after data showed a closely watched measure of inflation cooled in May, offering fresh evidence of easing price pressures due to the Federal Reserve’s aggressive interest rate hikes.

A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed’s preferred inflation gauge, rose 3.8% in May, on an annual basis from 4.3% last month.

Excluding volatile food and energy components, the PCE price index rose 4.6% in May on an annual basis from 4.7% in the previous month. Economists polled by Reuters expected core rates to remain steady at 4.7%.

At 8:36 a.m. ET, were up 159 points, or 0.46%, were up 26.5 points, or 0.6%, and were up 130.25 points, or 0.86%.

(This story has been refiled to fix syntax in the headline)