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Futures: Dow up 0.67%, S&P 500 up 0.14%, Nasdaq off 0.08%

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UnitedHealth ( UNH ) surges after Berkshire Hathaway ( BRK/A ) investment

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Dow set for record open, boosted by healthcare sector

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Applied Materials ( AMAT ) drops on weak China demand forecast

(Updates prices throughout)

By Johann M Cherian and Sanchayaita Roy

Aug 15 (Reuters) - The blue-chip Dow was on track to

open at a record high on Friday, underpinned by expectations of

an interest rate cut in September and gains in UnitedHealth's ( UNH )

shares after Berkshire Hathaway ( BRK/A ) raised its stake in the health

insurer.

Futures tracking the tech-heavy Nasdaq were slightly off as

chip stocks weakened after Applied Materials ( AMAT ) warned of

weak China demand.

UnitedHealth Group ( UNH ) jumped 11.5% in premarket

trading after Warren Buffett's company revealed a new

investment in the health insurer, while a securities filing

showed Michael Burry's Scion Asset Management included bullish

positions in the company.

Rising costs in the broader healthcare sector and an

about 46% slump in heavyweight UnitedHealth's ( UNH ) shares this year

have left the Dow lagging its Wall Street peers on the

road to record highs. The price-weighted index last scaled an

all-time high on December 4.

This week, however, the healthcare sector is

the top performer on the benchmark S&P 500 and is on track for

its best weekly performance in three.

Other insurers also gained, with Elevance up 4.2%,

Centene ( CNC ) rising 2.9% and Molina adding 3.7%

before the bell on Friday.

More broadly, the main U.S. stock indexes are on track for

their second week of gains, buoyed by expectations that the Fed

could restart its monetary policy easing cycle with a

25-basis-point interest rate cut in September.

The central bank last lowered borrowing costs in December

and said U.S. tariffs could add to price pressures. However,

recent labor market weakness and signs that tariff-induced

inflation was yet to reflect in headline consumer prices have

made investors confident of a potential dovish move next month.

"A 25bps rate cut is still almost fully priced in although

it has put a dampener on tentative expectations that the Fed

could deliver an even larger 50bps rate cut like last

September," analysts at MUFG said in a note.

"Market participants are still confident that the Fed will

resume rate cuts in response to weakness in the labor market and

the lack of pass through so far to consumer prices from higher

tariffs as evident in this week's CPI report."

At 07:16 a.m. ET, Dow E-minis were up 303 points, or

0.67%, S&P 500 E-minis were up 9.25 points, or 0.14%,

and Nasdaq 100 E-minis were down 19.25 points, or 0.08%.

Focus will now be on July retail sales data, due later in

the day, and the University of Michigan's report on consumer

confidence, for clues on the health of the American consumer.

Among other stocks, Applied Materials ( AMAT ) tumbled 14.1% after

the chip equipment maker issued weak fourth-quarter forecasts on

sluggish China demand, fueling concerns over tariff-related

risks.

Shares of other chip equipment makers such as KLA

and Lam Research ( LRCX ) lost 5.8% and 5%, respectively.

Intel ( INTC ) rose 2.7% on the heels of a 20% gain this

week after a report said the Trump administration was in talks

with the struggling chipmaker for the U.S. government to

potentially take a stake in the company.

On the commodities front, crude prices slipped to around $65

a barrel with attention on a meeting in Alaska between U.S.

President Donald Trump and his Russian counterpart, Vladimir

Putin, that markets hope could pave the way for a resolution to

the Ukraine conflict. The meeting will take place at 1900 GMT.

(Reporting by Johann M Cherian and Sanchayaita Roy in

Bengaluru; Editing by Devika Syamnath)