As the US financial markets gear up for the pivotal Personal Consumption Expenditures (PCE) inflation report due Friday, investor sentiment remains cautious. The US Dollar Index has drifted higher above 100.50, but analysts suggest potential upside is limited. Stock futures are little changed, with traders bracing for the data that is highly favored by the Federal Reserve. Wall Street is in a wait-and-watch mode, as the market digest the implications of the inflation data on future monetary policy, including the possibility of larger interest rate cuts. Recent moves in the stock market also reflect concerns, as S&P 500 and Dow futures hover near flatline while futures slip ahead of the key report. Given these dynamics, the upcoming PCE reading will certainly capture significant attention as investors speculate its potential impact on Federal Reserve actions and overall market momentum.