Futures edge higher as softer inflation report lifts rate-cut hopes

(Reuters) - U.S. stock index futures inched higher on Thursday, putting Wall Street on track to extend gains from the all-time highs hit in the previous session as a tepid inflation report bolstered hopes of interest-rate cuts.

All three major indexes notched record closes after a smaller-than-expected rise in consumer inflation fueled optimism that inflation was easing after three months of higher-than-expected numbers.

The market is back to betting on two quarter-point interest rate cuts from the Federal Reserve this year, with traders seeing a 72.4% chance of the first one in September, according to the CME FedWatch Tool.

The Dow is on track to cross the 40,000-mark for the first time, marking the blue-chip index's fastest 10,000-point climb, powered by strong quarterly results and rising bets of rate cuts.

Several Fed officials are expected to speak through the day, including Thomas Barkin, Loretta Mester, Raphael Bostic, Patrick Harker and Michael Barr.