Investing.com -- U.S. stock futures were mixed ahead of a new month of trading, after all three of the major indices on Wall Street clocked strong gains in May.

By 06:23 ET (10:23 GMT), the Dow futures contract had slipped by 32 points or 0.1%, S&P 500 futures had inched up by 10 points or 0.2%, and Nasdaq 100 futures had risen by 79 points or 0.4%.

September rate cut bets rise after PCE data reads as expected

Wall Street indices surged on Friday after personal consumption expenditures price index data, which is the Fed’s preferred inflation gauge, matched expectations for April.

The PCE reading showed some mild cooling in inflation, although it remained well above the Fed’s 2% annual inflation target.

Still, the data, coupled with other recent indicators of a cooling U.S. economy, spurred some bets that the central bank will begin cutting interest rates in September.

Traders were seen pricing in a roughly 47% chance for a 25 basis point cut in September, along with a roughly 45% chance that the Fed will hold, according to the CME Fedwatch tool. This positioning helped boost U.S. stocks.

The S&P 500 rose 0.8% to 5,277.51 points on Friday, while the Dow Jones Industrial Average rallied 1.5 to 38,686.32 points. The NASDAQ Composite lagged on weakness in tech stocks, ending flat at 16,735.02 points.

Nonfarm payrolls, Fed meeting approach

Market observers are now turning their focus to upcoming nonfarm payrolls data for May, due later this week, which is set to offer more cues on the labor market -- another key consideration for the Fed in cutting interest rates.

The central bank is set to meet next week and is widely tipped to keep rates steady. But any commentary on future rate decisions will be closely monitored.

Fed policymakers have continued to call for patience on rate reductions, saying they would like to see more proof that inflation is sustainably heading back down to their 2% target. On Monday, Minneapolis Fed President Neel Kashkari echoed this sentiment, telling the Financial Times that rates may have to stay on hold for an "extended" period of time.

Ambar Warrick contributed to this report.