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MicroStrategy ( MSTR ) rises on plans of Nasdaq 100 inclusion

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Crypto stocks gain after bitcoin touches new high

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Honeywell ( HON ) explores separation of aerospace business

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Futures up: Dow 0.12%, S&P 500 0.18%, Nasdaq 0.30%

(Updates with prices)

By Lisa Pauline Mattackal and Purvi Agarwal

Dec 16 (Reuters) - U.S. stock index futures gained

ground on Monday, as investors were optimistic ahead of an

anticipated Federal Reserve interest rate cut later in the week,

as well as key data prints that will help set the tone for

policy next year.

The Fed's final rate decision of the year is due on

Wednesday, with traders pricing in an over 97% chance of a 25

basis point rate reduction, as per CME's FedWatch.

However, the primary focus will be on policymakers' outlook

for next year, with an updated "dot plot" of forecasts also to

be released, as bets moderate on the pace of rate cuts amid

strong economic growth and persistent inflation.

"The main focus will be on the Fed, which is generally

expected to cut by 25 basis points, but we believe that the Fed

will lower expectations of rate cuts further ahead," said

analysts at SEB.

A heavy data docket also awaits investors over the week. S&P

Global's December flash manufacturing and services PMIs are due

at 9:45 a.m. ET on the day, with industrial production figures,

retail sales, and personal consumption expenditure data also

scheduled throughout the week.

At 7:05 a.m. ET, Dow E-minis were up 52 points,

or 0.12%, S&P 500 E-minis were up 11 points, or 0.18%

and Nasdaq 100 E-minis were up 65.75 points, or 0.30%.

The benchmark S&P 500 and the blue-chip Dow

ended the previous week lower, while the tech-heavy

Nasdaq had clocked its fourth straight week of gains

after breaching the 20,000 mark for the first time.

Stocks have had a bumper run this year, as gains in shares

related to artificial intelligence, the start of the Federal

Reserve's rate cutting cycle and expected pro-business policies

from Donald Trump's incoming presidential administration have

lifted equities.

Shares of MicroStrategy ( MSTR ) rose 3.5% in premarket

trading as the software company and bitcoin buyer was set to

join the tech-heavy Nasdaq 100 index.

Palantir ( PLTR ) and Axon Enterprise ( AXON ) gained 0.4%

and 2.3%, respectively, with the stocks also to be added to the

reconstituted index. The changes will take effect on Dec. 23.

Super Micro Computer ( SMCI ), among those set to be removed

from the index, dropped 13.5%.

Crypotocurrency stocks rose as bitcoin briefly jumped

above $106,000 after Trump suggested he plans to create a U.S.

bitcoin strategic reserve similar to its strategic oil reserve.

Coinbase Global ( COIN ) rose 1.8% and bitcoin miner MARA

Holdings ( MARA ) gained 2.3%.

Honeywell International ( HON ) gained 3% after the

industrial conglomerate said it was exploring a separation of

its aerospace business.