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US moves towards faster stock settlement

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Apple ( AAPL ) gains on strong iPhone sales in China

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UBS lifts S&P 500's year-end target to Street high of

5,600

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Futures: Dow down 0.11%, S&P up 0.10%, Nasdaq up 0.24%

(Updated at 7:07 a.m. ET/1107 GMT)

By Johann M Cherian and Lisa Pauline Mattackal

May 28 (Reuters) - Futures for the S&P 500 and the

Nasdaq edged higher on Tuesday after a holiday-extended weekend,

as investors awaited key inflation data later in the week that

could test expectations for the Federal Reserve's monetary

policy path.

The tech-heavy Nasdaq and the benchmark S&P 500

managed to notch their fifth straight week of gains on

Friday.

Market attention now shifts to the U.S. core Personal

Consumption Expenditures Price Index report for April later in

the week. The Fed's preferred inflation barometer is expected to

hold steady on a monthly basis.

Expectations for the timing of rate cuts have see-sawed as

Fed policymakers continue to dismiss the need for imminent rate

cuts, given data reflects a still-resilient economy and sticky

inflation.

Traders see a 51.2% chance that the first rate cut of

at-least 25 basis points could be delivered in September,

according to the CME FedWatch Tool.

Futures for the Nasdaq rose, led by a 2.6% rise in AI

darling Nvidia ( NVDA ), after closing at a record high on

Friday.

Market sentiment remains fairly upbeat, with the S&P 500

hovering just below all-time highs. UBS Global Research raised

its year-end target for the benchmark index to 5,600 from an

earlier projection of 5,400, marking the highest forecast among

major brokerages.

The "T+1" settlement cycle will be implemented starting from

Tuesday's session and analysts expect extreme price volatility.

The reform, designed to reduce counterparty risk and improve

market liquidity, will ensure the settlement of trades in one

business day rather than two.

"Banks and the exchanges have been planning this for months,

and this week we will see if the machine runs smoothly or if

there will be some early missteps," said Kathleen Brooks,

research director at XTB.

U.S. consumer confidence data for May is due at 10 a.m. ET.

Other key events this week include the second estimate for

first-quarter gross domestic product and the Fed's Beige Book,

along with remarks from a number of central bankers.

Minneapolis Fed President Neel Kashkari said in an interview

with CNBC broadcast that the U.S. central bank should wait

before cutting interest rates, adding that it could potentially

even hike rates if inflation fails to fall further.

At 7:07 a.m. ET, Dow e-minis were down 44 points,

or 0.11%, S&P 500 e-minis were up 5.5 points, or 0.10%,

and Nasdaq 100 e-minis were up 44.75 points, or 0.24%.

Apple ( AAPL ) jumped, up 2.0% after iPhone sales in China

surged 52% in April from a year earlier, Reuters calculations

based on industry data showed. Shares of Apple ( AAPL ) supplier Qualcomm ( QCOM )

rose 2.2%.

Meme stock GameStop ( GME ) shot up 24.2% after the

videogame retailer said late on Friday it had raised $933

million by selling 45 million shares, as part of an

"at-the-market" offering.