Futures rose and rate-cut bets strengthened as PCE price index rose 0.3% in February, lower than expected.

Futures rose as signs of softening inflation boosted rate cut hopes; the Commerce Department's data showed the PCE price index rose 0.3% in February, compared with estimates of a 0.4% increase. This report strengthened rate-cut bets, with money markets pricing in a 66% chance of a 25 basis point cut in June, compared with 55% a day before the data was released. Fed Chair Jerome Powell said he expected interest rates to be lower than current levels but to remain above pandemic levels.