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Futures up: Dow 0.29%, S&P 500 0.24%, Nasdaq 0.29%

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Nike ( NKE ) rises after better-than-expected Q1 revenue forecast

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UBS lifts S&P 500 index's annual target on fading trade

tensions

(Updates before markets open)

By Kanchana Chakravarty and Nikhil Sharma

June 27 (Reuters) -

The S&P 500 and the Nasdaq were on track to touch record

highs on Friday as a benign inflation report supported hopes for

a dovish policy outlook from the Federal Reserve this year.

A Commerce Department report showed the Personal Consumption

Expenditure price index rose 0.1% in May, in line with estimates

by economists polled by Reuters. In the 12 months through May,

PCE inflation advanced 2.3% after climbing 2.1% in April.

The

data

also showed U.S. consumer spending unexpectedly fell in May

as the boost from consumers preemptively buying goods such as

motor vehicles ahead of tariffs faded.

"The numbers in general in terms of inflation are not

anything that would change the course of the Fed at this time,

and it still shows that inflation pretty much is going in the

right direction," said Peter Cardillo, chief market economist at

Spartan Capital Securities.

As the ceasefire in the Middle East holds, investor focus

has turned to the prospect of a dovish Fed after the Wall Street

Journal reported that U.S. President Donald Trump toyed with the

idea of announcing Fed Chair Jerome Powell's replacement by

September or October.

A spate of economic data this week, including a

weaker-than-expected first-quarter GDP reading as well as

jobless claims reaching multi-year highs, has supported the case

for the central bank to cut borrowing costs this year.

Traders now price in a 20.7% chance of a rate cut in July,

compared with 14.5% last week, according to CME Group's FedWatch

tool.

U.S. Treasury Secretary Scott Bessent said the Trump

administration's various trade deals with other countries could

be done by the September 1 Labor Day holiday, citing the

country's 18 main trading partners.

At 08:43 a.m. ET, Dow E-minis were up 125 points, or

0.29%, S&P 500 E-minis were up 15 points, or 0.24%, and

Nasdaq 100 E-minis were up 64.75 points, or 0.29%.

Nike's ( NKE ) shares rose 10.7% in premarket trading after

it forecast a smaller-than-expected drop in first-quarter

revenue.

Retailer Lululemon Athletica ( LULU ) rose 1.7% after Nike's ( NKE )

results, while Hoka-owner Deckers Outdoor ( DECK ) added 1.9%.

American nuclear energy firms gained after Reuters reported

the Trump administration was readying a package of executive

actions aimed at boosting energy supply to power the U.S. AI

expansion. Oklo's ( OKLO ) shares advanced 7.3% and

Constellation Energy ( CEG ) rose 2.7%.

On the flip side, gold stocks slipped as bullion neared a

one-month low. Top miners such as Newmont ( NEM ) and

U.S.-listed Barrick Mining were down 2.2% and 2.1%,

respectively.

The benchmark S&P 500 and the Nasdaq are on

track for their best weekly performance in more than a month,

while the blue-chip Dow is set for a weekly advance if

gains hold.

UBS Global Wealth Management raised its year-end target for

the S&P 500 index to 6,200 from its prior forecast of

6,000, banking on softening trade uncertainty.

Adding to the upbeat sentiment, Washington reached an

agreement with China on expediting rare-earth shipments to the

United States, a White House official said, days ahead of the

July 9 deadline for Trump's "reciprocal" tariffs.

Also on tap is the final reading of consumer sentiment for

June, measured by the University of Michigan Surveys of

Consumers, due at 10:00 a.m. ET.

Remarks from Cleveland Fed President Beth Hammack and Fed

Board Governor Lisa Cook are expected later in the day.