Dow Jones futures inch higher due to rising odds of a bumper Fed rate cut

• Dow Jones futures gain ground amid rising likelihood of a bumper 50-basis-point rate cut by the Fed in September.
• Traders await the US Nonfarm Payrolls Benchmark Revision for guidance on the Fed rate cut size.
• Chipmakers boosted US markets, with Broadcom rising 3.21% and Nvidia up 0.77%, while Amazon climbed 1.4%.

Dow Jones futures move little, edging up 0.05% to trade around 45,600 during European hours on Monday, ahead of the United States (US) market open. Meanwhile, the S&P 500 futures advance 0.13% to trade above 6,500, while Nasdaq 100 futures climb 0.23% to trade near 23,850.

US stock futures received support amid rising odds of a bumper 50-basis-point rate cut by the US Federal Reserve (Fed) at its September meeting, driven by last week's disappointing jobs data. Traders are keenly awaiting the US Nonfarm Payrolls Benchmark Revision due later in the day to gain fresh cues on the size of the rate cut in September.

In August 2024, the US Bureau of Labor Statistics (BLS) released the preliminary annual benchmark revisions with 818,000 new jobs added, fewer jobs than originally reported in the 12-month period through March 2024. In response, the Fed lowered the policy rate by 50 basis points (bps) in September 2024.

Read full article: Will Nonfarm Payrolls revisions hint at a 50 bps Fed cut next week?

The Dow Jones rose 0.25%, the S&P 500 added 0.21%, while the Nasdaq Composite gained 0.45% to close at a fresh record high in Monday's session. US markets were supported by chipmakers, with Broadcom up 3.21% and Nvidia up 0.77%, while Amazon advanced 1.4%.

Focus will shift toward US inflation reports that could provide fresh impetus for the Federal Reserve policy outlook. The August US Producer Price Index (PPI) figures are scheduled for release on Wednesday, followed by the Consumer Price Index (CPI) data on Thursday.