Futures rise, PCE ahead, budget fight latest - what's moving markets

investing.com:

Investing.com -- U.S. stock markets remain on course for a September slump heading into the final trading day of the month, despite a positive session on Wall Street on Thursday. As the latest quarter also draws to a close, a gauge of inflation closely-watched by the Federal Reserve will be in focus, while investors will be keeping an eye on a tense budget fight in Washington ahead of a possible government shutdown this weekend.

1. Futures point higher

U.S. stock futures rose on Friday, suggesting an extension of gains made in the prior session, although equities remain on track to post a negative month.

At 04:51 ET (08:51 GMT), the Dow futures contract had added 154 points or 0.5%, S&P 500 futures increased by 21 points or 0.5%, and Nasdaq 100 futures jumped by 98 points or 0.7%.

The main indices on Wall Street finished in the green on Thursday, with the tech-heavy Nasdaq Composite the outperformer following a climb of 0.8%. Stocks were supported by a pull-back in U.S. Treasury yields from 16-year highs.

Heading into the final trading day of both the month and quarter, the Nasdaq and benchmark S&P 500 are on course to slip to their worst months so far this year, while the 30-stock Dow Jones Industrial Average is on pace to decline by 3%.

On the data front, investors will be keeping an eye on the latest U.S. personal consumption expenditures (PCE) price index — the Federal Reserve's preferred inflation gauge — due out later on Friday. Attention has been fixed recently on the Fed's future interest rate path, as well as a spike in oil prices and an ongoing budgetary stand-off in Washington that threatens to cause a government shutdown.

2. PCE ahead

Economists expect the headline PCE reading for August to accelerate, an