The S&P 500 and Nasdaq futures erased losses and rose on Thursday after a key inflation metric came in line with estimates, raising hopes of early interest rate cuts by the U.S. Federal Reserve.

A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed’s preferred inflation gauge, climbed 0.3% in January month-on-month, as expected.

At 08:34 a.m. ET, Dow e-minis YM1! were down 25 points, or 0.06%, S&P 500 e-minis ES1! were up 4.75 points, or 0.09%, and Nasdaq 100 e-minis NQ1! were up 43 points, or 0.24%.