U.S. stock index futures pared some losses on Friday after a benign inflation reading added to hopes that the U.S. Federal Reserve could cut interest rates soon.

A commerce department report showed the Personal Consumption Expenditures Price index (PCE) rose 0.1% in April compared with a 0.1% increase expected by economists polled by Reuters. Annually, it stood at 2.1% against estimates of 2.2%.

The core reading increased 0.1% on a monthly basis compared with an estimated 0.1% rise. It stood at 2.5% on a year-on-year basis against estimates of 2.5%.

At 08:33 a.m. ET, Dow E-minis were down 124 points, or 0.29%, S&P 500 E-minis were down 21.5 points, or 0.36% and Nasdaq 100 E-minis were down 72.5 points, or 0.34%.