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* Futures up: Dow 0.3%, S&P 500 0.31%, Nasdaq 0.5%

May 22 (Reuters) - U.S. stock index futures climbed on

Friday as Treasury yields eased, lifting megacaps and chip

stocks, though markets watched for signs of a breakthrough in

discussions to end the Middle East war.

Iran's foreign minister met the interior minister of

Pakistan to discuss proposals to end the nearly three-month-old

conflict, media reports said.

This comes after U.S. Secretary of State Marco Rubio told

reporters on Thursday there had been "some good signs" in the

talks, but Tehran and Washington still remain at odds over

Iran's uranium stockpile and control over the Strait of Hormuz.

Global stocks have whipsawed since the conflict began in

late February, with most bourses in Europe and Asia yet to

ascend to earlier levels.

Wall Street, on the other hand, has climbed back up to

record highs this month as rekindled optimism in the AI trade

and faith in resilient earnings growth kept equities in demand.

UBS Global Wealth Management raised its 2026 year-end target

for the S&P 500 to 7,900 from 7,500, citing resilient consumer

spending and seemingly insatiable demand for data center

infrastructure.

The recovery, however, is choppy as investors fret about the

inflationary impact of surging oil prices, pushing government

bond yields higher around the world and hitting risk appetite.

Still, the S&P 500 is on track for an eighth

consecutive weekly gain, which would mark its best winning

streak since December 2023.

"Geopolitical risk has become less immediately damaging for

sentiment, even though it has not disappeared," said Naeem

Aslam, chief investment officer at Zaye Capital Markets.

"Markets are still watching U.S.-Iran talks, the Strait of

Hormuz and oil-supply risk, but signs of negotiation progress

have helped global equities."

All three main indexes closed higher in a turbulent session

on Thursday, with the blue-chip Dow recording its highest

ever closing level.

Treasury yields slipped on Friday after a spike earlier this

week, with the one on the 10-year U.S. note falling

2.2 basis points to 4.56%.

At 04:55 a.m. ET, Dow E-minis rose 151 points, or

0.3%, S&P 500 E-minis added 23 points, or 0.31%, and

Nasdaq 100 E-minis gained 148 points, or 0.5%.

Most megacap and growth stocks were higher in premarket

trading. Nvidia ( NVDA ) inched up 0.7%, a day after the stock

fell 1.7% despite providing a robust quarterly forecast.

Semiconductor stocks, a key driver of recent Wall Street

gains, also rose. Intel ( INTC ), AMD, Marvell

Technology ( MRVL ) and Broadcom ( AVGO ) advanced between 0.9%

and 3.2%.

Workday jumped 11.1% after the human resources

software provider exceeded expectations for first-quarter

revenue and profit.

Take-Two Interactive added 5% after the video game

company reiterated the November 19 launch date for the highly

awaited "Grand Theft Auto VI" game.

Estée Lauder surged 10.1% after the cosmetics maker

and Spanish perfumery Puig ended talks for a

potential merger.

Meanwhile, U.S. President Donald Trump will swear in Kevin

Warsh as Federal Reserve chair late in the day at the White

House, the Trump administration said.

A final reading of the May U.S. consumer sentiment is also

due later in the day.