U.S. stock index futures slipped Friday, as investors exercised caution ahead of a crucial inflation report which could sway expectations on the size of upcoming interest rate cuts by the Federal Reserve.

A Commerce Department report, due at 8:30 a.m. ET, is expected to show the Personal Consumption Expenditure Index - the Fed's preferred inflation gauge - rose by 2.3% in August, according to economists polled by Reuters, down from 2.5% the month before.

Price pressures have moved closer to the central bank's 2% target, giving the Fed enough room to kick off its easing cycle with a 50 basis point rate cut last week. Its focus now will be more on ensuring that there is no spike in unemployment.

"Even in the case of a small deviation from consensus, the recent shift in the Fed's focus to the employment side of its mandate means markets are less sensitive to inflation news," strategists at ING Bank said.

Data through the week points to a still resilient economy overall, leaving traders uncertain about the Fed's next move. Odds that the central bank will undertake another outsized move at its upcoming November meeting stand at 51.4%, as per the CME Group's FedWatch Tool. Those for a 25 bps reduction stand at 48.6%.

At 05:23 a.m. ET, Dow E-minis were down 15 points, or 0.04% , S&P 500 E-minis were down 3.5 points, or 0.06% and Nasdaq 100 E-minis were down 36.75 points, or 0.18%.

Also on tap is a final September estimate on consumer sentiment by the University of Michigan and remarks from Fed Governor Michelle Bowman.

Late on Thursday, Fed Governor Lisa Cook said the central bank's rare move earlier this month could address increased "downside risks" to employment.

Wall Street's main indexes ended higher in the previous session, with the S&P 500 closing at its highest levels on record after an upbeat forecast from Micron invigorated optimism around artificial intelligence. The chip maker slipped 0.6% in premarket trading.

The benchmark index along with the blue-chip Dow and tech-heavy Nasdaq are on track for their third-straight week of gains.

Among other stocks, Bristol Myers Squibb surged 6.2% after the U.S. FDA approved its schizophrenia drug, providing patients with a treatment option that reduces symptoms of the mental disorder without common side effects.

Costco Wholesale dropped 1.4% after missing market expectations for fourth-quarter revenue, hurt by cautious consumer spending on pricier items at its membership-only stores and lower gasoline prices.

U.S.-listed shares of Chinese firms such as Alibaba rose 1.9%, PDD Holdings climbed 4.1% and Li Auto advanced 2.3%, tracking domestic stocks after China's central bank lowered interest rates and injected liquidity into the banking system, in its latest stimulus move.

Miners such as Albemarle added 3% and U.S.-listed shares of BHP rose 1% after a report showed top Chinese cities Shanghai and Shenzhen are planning to lift key remaining restrictions on home purchases to attract potential buyers.