(Reuters) -U.S. stock index futures climbed on Friday, putting the S&P 500 and the Nasdaq on track for record highs, as investors awaited a key inflation reading amid growing expectations of a dovish monetary policy from the Federal Reserve this year.

Personal Consumption Expenditure data - the U.S. central bank's preferred inflation gauge - for May is due to be released at 08:30 a.m. ET and will be scrutinized for a better understanding of the Fed's interest-rate path as President Donald Trump's tariffs weigh on prices.

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 Trump has toyed with the idea of selecting and 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 Fed to cut borrowing costs this year.

Traders now price in a 20% chance of a rate cut in July, compared with 12.5% last week, according to CME Group's FedWatch tool.

At 05:25 a.m. ET, Dow E-minis were up 103 points, or 0.24%, S&P 500 E-minis were up 15 points, or 0.24%, and Nasdaq 100 E-minis were up 70.25 points, or 0.31%

Nike's shares rose 9.6% in premarket trading after the retailer forecast a smaller-than-expected drop in first-quarter revenue.

Retailer Lululemon Athletica rose 1.7% after Nike's results.

The benchmark S&P 500 and the Nasdaq are on track for their best weekly performance in six weeks while the blue-chip Dow is set for a weekly advance, if gains hold.

Adding to the upbeat mood, 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 New York Fed President John Williams, Cleveland Fed President Beth Hammack and Fed Board Governor Lisa Cook are expected later in the day.