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Futures up: Dow 0.28%, S&P 0.31%, Nasdaq 0.45%

April 4 (Reuters) - U.S. stock index futures gained on

Thursday as the latest economic report made a case for interest

rate cuts by the Federal Reserve, while investors awaited more

data and comments from policymakers for clues on the timing.

The S&P 500 and Nasdaq closed higher on Wednesday after data

showed the U.S. services industry growth slowed further in March

and as market participants assessed statements from Fed

officials, including from Chair Jerome Powell.

While policymakers generally agreed that rates could fall

later this year, Powell said this would happen only when they

"have greater confidence that inflation is moving sustainably

down" to the Fed's 2% target.

"What he (Powell) says matters, even if the inflation and

labor market data has been surprising on the upside, the

prospect of interest rate cuts are still in play," Kathleen

Brooks, research director at XTB, wrote in a note.

Investors have been circumspect about the timings of the

rate cuts, given mixed reports on the economic performance.

Equities fell earlier in the week on the back of some strong

economic reports, including manufacturing activity and job

openings data that raised questions about the three rate cuts

widely priced in for the year.

Money markets are currently seeing a near 59% chance of at

least a 25 basis point rate cut in June, according to the CME

Group's FedWatch tool.

Focus will also be on Fed policymakers, including Richmond

Fed President Thomas Barkin, a voting member, and his Cleveland

counterpart Loretta Mester, for further clues on monetary

policy.

On the data front, markets will eye the initial jobless

claims numbers for the week ended March 30, due at 8:30 a.m. ET,

before the key nonfarm payrolls data on Friday.

At 5:35 a.m. ET, S&P 500 E-minis were up 16.5

points, or 0.31%, with 80,353 contracts changing hands, Nasdaq

100 E-minis were up 82.75 points, or 0.45%, Dow E-minis

were up 111 points, or 0.28%

Some megacap growth stocks edged up in premarket trading,

with Meta Platforms ( META ), Amazon.com ( AMZN ) and Nvidia ( NVDA )

up between 0.5% and 1.3%.

Among individual stocks, Levi Strauss jumped 8.3%

after the apparel maker raised its annual profit forecast,

citing savings from its recent cost-cutting measures and fewer

discounts.

Micron Technology ( MU ) gained 1.1%, after rising about

4.3% in the previous session to close at a record high.

(Reporting by Shristi Achar A in Bengaluru; Editing by Anil

D'Silva)