Wall Street was set for a marginally higher open on Friday after data underscored the narrative that price pressures were cooling, raising expectations that the Federal Reserve's next move might be another outsized interest rate cut.

A Commerce Department report showed the personal consumption expenditure (PCE) index, the Fed's preferred inflation measure, rose 2.2% in August on an annual basis, compared with estimates of 2.3%, as per economists polled by Reuters. On a monthly basis, it rose 0.1%.

Odds that the central bank will cut rates by 50 basis points at its November meeting stood at about 53%, compared with 50% seen before the data. Those for a 25 bps reduction stand at about 47%, as per the CME Group's FedWatch Tool.

Rate-sensitive growth stocks were mixed in premarket trading, as yields on short-term Treasury bonds dipped following the data.

Tesla added 1% and Alphabet climbed 0.3% in premarket trading, while Nvidia and Amazon.com were flat.

"It's a relief to have (inflation) move in the right direction and hopefully it continues going in that direction," said Joe Saluzzi, co-head of equity trading at Themis Trading.

"It really doesn't matter whether it's 50 bps or 25 bps. What matters is, will they continue cutting rates over the next year?"

Inflation moderating towards the central bank's 2% target gave the Fed enough room to commence its policy easing cycle with a 50 basis point rate cut last week. Ensuring that unemployment rates do not shoot up will be its focus now, with all eyes on a slew of job reports due next week.

At 8:45 a.m. ET, Dow E-minis were up 90 points, or 0.21%, S&P 500 E-minis were up 10.5 points, or 0.18% and Nasdaq 100 E-minis were up 36.25 points, or 0.18%.

Futures tied to the Russell 2000 index, which tracks small caps, outperformed with a 1% rise.

The University of Michigan's final September estimate on consumer sentiment and remarks from Fed Governor Michelle Bowman are also in focus on the day.

Late on Thursday, Fed Governor Lisa Cook said the central bank's rare move earlier this month could address increased "downside risks" to employment.

Wall Street's main indexes ended higher in the previous session, with the S&P 500 closing at its highest levels on record after an upbeat forecast from Micron invigorated optimism around artificial intelligence.

The benchmark index along with the blue-chip Dow and tech-heavy Nasdaq are on track for their third-straight week of gains.

Among other stocks, Bristol Myers Squibb surged 3.75% after the U.S. FDA approved its schizophrenia drug.

Costco Wholesale dropped 1% after posing downbeat fourth-quarter revenue.

Dollar General slipped 1.9% after Citigroup downgraded to "sell" from "neutral".

U.S.-listed shares of Chinese firms such as Alibaba rose 1%, PDD Holdings climbed 2.5% and NetEase gained 2.1% after China's central bank lowered interest rates and injected liquidity into the banking system, in its latest stimulus move.

Miners such as Albemarle added 2.9% and U.S.-listed shares of BHP rose 1% after a report showed top Chinese cities Shanghai and Shenzhen are planning to lift key remaining restrictions on home purchases to attract potential buyers.

(Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Anil D'Silva and Maju Samuel)