US Stock Futures Rise on Cooling Inflation and Solid Economic Growth

US stock futures edged higher on Friday morning, driven by easing inflation and solid economic growth. The S&P 500 futures rose about 0.3%, while Nasdaq 100 futures gained roughly 0.5%. A key driver of the market's positivity is the US PCE price index for June, which is expected to edge down 0.1% month on month, but still remain above the Federal Reserve's 2% target.

The core measure of inflation, which excludes volatile food and energy prices, is seen up 0.2%. This suggests that while inflation is cooling, it remains a concern for investors. Meanwhile, the US Q2 GDP is projected at 2.1% annualized, indicating that consumers are still spending.

Investors face a dilemma: whether to lean into tech, which benefits from slow inflation and steady growth, or more cyclical areas such as industrials and consumer stocks. To navigate this uncertainty, it's essential to focus on high-quality undervalued stocks.