US STOCKS-US stock futures flat as investors await key economic data

Dec 4 (Reuters) - U.S. stock index futures were little changed on Thursday as investors took a pause after expectations of an imminent Federal Reserve interest rate cut lifted Wall Street's main indexes to new highs in the previous session, while caution prevailed ahead of a fresh batch of economic data.

U.S. equity indexes rose for the seventh time in eight days on Wednesday after a weak ADP jobs report and an ISM survey showing easing inflation pressures boosted expectations of a Fed rate cut next week.

Fed funds futures point to an 87% chance that the central bank will cut rates by 25 basis points this month, up from around 60% last month, according to the CME Group's FedWatch Tool.

The Russell 2000 index .RUT, which tracks small-caps that tend to thrive in a lower interest-rate environment, currently outperforms the benchmark S&P 500 .SPX on a quarterly basis.

Brokerages Jefferies and BofA Securities have forecast strong earnings growth for smaller companies next year.

"Investors are leaning into the idea that easier policy is coming, which is fueling appetite for risk and lifting everything from blue chips to small caps," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Weekly jobless claims and Challenger, Gray & Christmas data on November layoffs due later on Thursday will offer fresh insight into the labor market. A delayed report on factory orders is also expected later in the day.

Investor attention is largely centered on Friday's September Personal Consumption Expenditures report, the Fed's preferred inflation gauge.

It will be the first PCE report since the recent U.S. government shutdown left markets and policymakers with little insight into the U.S. economy.

At 5:24 a.m. ET, Dow E-minis YMcv1 were up 64 points, or 0.13%, S&P 500 E-minis EScv1 were up 5.75 points, and 0.08% Nasdaq 100 E-minis NQcv1 were up 21.5 points, or 0.08%.

Traders were also watching developments around U.S. President Donald Trump's selection of the next Federal Reserve chair, in a year of heightened concern over potential political interference in monetary policy.

A report said bond investors have expressed concerns to the U.S. Treasury that Kevin Hassett, a leading contender for the role, might pursue aggressive rate cuts to align monetary policy more closely with President Donald Trump's preferences.

In premarket trading, Snowflake lost 9.2% after the cloud data analytics company's fourth-quarter product revenue forecast fell short of lofty investor expectations for stronger growth.

Salesforce gained 2% after the software maker raised its fiscal 2026 revenue and adjusted profit forecasts, anticipating growth in its artificial intelligence agent platform due to strong enterprise demand.

PayPal PYPL.O lost 1% after brokerage JP Morgan lowered its rating on the fintech company to "neutral" from "overweight".

Earnings reports from companies including Hormel Foods HRL.N, Dollar General DG.N and Kroger KR.N are expected before markets open and could offer more insight into the economic health of the American consumer.