U.S. stock futures pointed higher on Friday as investors increased bets that the Federal Reserve could cut interest rates in September. The shift in expectations followed inflation data that came in softer than economists had anticipated, easing pressure on markets.

Traders used the new figures to reassess the central bank’s next move, with interest-rate sensitive sectors expected to benefit if borrowing costs fall. The prospect of a cut also supported broader risk appetite, helping futures extend their gains before the opening bell.

The market reaction reflects growing confidence that inflation is cooling enough to give policymakers more room to loosen policy later this year. Even so, investors remain alert to additional economic reports that could either reinforce or challenge the case for an early cut.

Friday’s upbeat tone suggests Wall Street is entering the session with cautious optimism, though the path ahead still depends on incoming data and signals from the Fed.