U.S. stock index futures traded higher on Friday as investors focused on a crucial inflation report that could influence expectations about the extent of the Federal Reserve's interest-rate cuts this year.

Global markets are nearing the end of a tumultuous month for riskier assets, after signs of a sudden moderation in the labor market sparked fears of a quicker-than-expected slowdown in the world's largest economy in early August. The influence of the Japanese yen carry trade worsened the rout.

Risk-taking has improved since then, with the Dow at a record high and on track for monthly gains as subsequent data, including Thursday's upward revision to economic growth, soothed jumpy investors.

Focus now shifts to July's Personal Consumption Expenditure data, the Fed's preferred inflation gauge, due at 8:30 a.m. E.T. - the last PCE report before the central bank's highly anticipated September meeting.

Economists polled by Reuters forecast a marginal rise to 2.6% on an annual basis, from the previous month's 2.5%.

Following Chair Jerome Powell's support last week for imminent policy adjustment, optimism around an interest-rate cut in September remains strong. Odds of a 25-basis-point reduction are at 65.5%, while those for a 50-bps reduction are at 34.5%, according to the CME Group's FedWatch Tool.

At 05:47 a.m. ET, Dow E-minis were up 65 points, or 0.16%, S&P 500 E-minis were up 21.25 points, or 0.38%, Nasdaq 100 E-minis were up 126.5 points, or 0.65%.

The tech-focused Nasdaq and the S&P 500 closed lower in the previous session after Nvidia failed to match investors' lofty expectations despite upbeat results and a broadly in-line forecast. The AI-chip bellwether was up 1.7% in premarket trading after a 6.4% drop in the previous session.

The benchmark S&P 500 is close to an all-time high, poised for a monthly gain of 1.2%, while the Nasdaq is down 0.47% in August.

Rate-sensitive megacaps such as Alphabet and Microsoft added 0.6% and 0.8%, respectively, while Tesla rose more than 1.4%, supported by a dip in Treasury yields.

Among others, Marvell Technology forecast third-quarter results above Street estimates, sending the chipmaker's shares up 9.2%.

Dell Technologies advanced 6% after lifting its annual revenue and profit forecasts, buoyed by demand for its AI-optimized servers.

Lululemon Athletica gained 4.4% after posting a beat on second-quarter profit, while Ulta Beauty slid 6.2% after it trimmed its annual results forecasts due to slowing demand.

Investors will also parse the University of Michigan's final reading on consumer sentiment for the month of August later in the day.

Trading volumes are expected to thin ahead of the extended weekend due to the Labor Day holiday.

(Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)