(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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December Producer Price Index report due at 8:30 a.m. ET

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Applied Digital ( APLD ) jumps after report of Macquarie's

investment

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Futures up: Dow 0.25%, S&P 500 0.32%, Nasdaq 0.38%

(Updates with analyst comment)

By Johann M Cherian and Sukriti Gupta

Jan 14 (Reuters) -

U.S. stock index futures rose on Tuesday, buoyed by falling

Treasury yields as investors awaited the December inflation

numbers and upcoming corporate earnings to evaluate the health

of the economy.

At 07:11 a.m. ET, Dow E-minis were up 107

points, or 0.25%, S&P 500 E-minis were up 18.75 points,

or 0.32% and Nasdaq 100 E-minis were up 79.25 points, or

0.38%.

Providing some respite, yields on longer-dated Treasury

bonds dipped on Tuesday, but are near

their highest levels since late 2023. Analysts pointed to a

report that said the incoming Donald Trump administration was

considering gradual tariff hikes, giving the U.S. negotiating

leverage.

Traders have pared expectations for a Fed rate cut in

2025, according to data compiled by LSEG, and now see the

central bank lowering interest rates by about 27.4 basis points

by the end of the year.

"Although the tariff news has seen investors add a few

basis points to the total cuts expected for 2025, there is scope

for an even larger reversal in the recent moves, highlighting

the downside risks to the dollar, should Trump continue to

soften his stance on his aggressive policies," said Raffi

Boyadjian, lead market analyst at brokerage XM.

The Producer Price Index data, due at 8:30 a.m. ET, will

be the first of two reports due this week that will help gauge

where inflation stands in the U.S.

Economists polled by Reuters forecast the index to have

risen to 3.4% in December from 3% the previous month. The focus

will be on healthcare services, portfolio management fees and

airfares among the components that feed into the Personal

Consumption Expenditure index, the U.S. Federal Reserve's

preferred inflation gauge.

Excluding volatile items such as food and energy, the

PPI index is expected to have risen to 3.8% in December. The

Consumer Price Index data is due on Wednesday.

Quarterly reports from big banks are also highly

anticipated later this week, with the lenders expected to report

stronger earnings, fueled by robust dealmaking and trading.

JPMorgan Chase & Co ( JPM ) added 0.4%, Morgan Stanley ( MS )

rose 0.7% and Citigroup ( C/PN ) climbed 0.6% in premarket

trading.

Wall Street's main indexes have been on a downward

trajectory since early December, with the price-weighted Dow

down more than 6% from its record high hit last month,

and the benchmark S&P 500 at a two-month low.

The central bank's cautious stance on monetary policy easing

this year, along with subsequent batches of upbeat economic

data, raised investor concerns that inflation might be running

high.

Trump is expected to take office on Jan. 20 and his policy

proposals on tariffs and immigration are widely expected to fuel

inflation.

Comments from Kansas City Fed President Jeffrey Schmid and

New York Fed President John Williams, who are voting members on

the Federal Open Market Committee, will also be in focus.

AI-bellwether Nvidia ( NVDA ) rose 1.4% after logging four

days of declines, on expectations that fresh U.S. export

restrictions could hurt the company's revenues, while Tesla

added 2%.

Applied Digital ( APLD ) jumped more than 25% after a report

said Macquarie would take a 15% stake in it and also

invest up to $5 billion in the company's AI data centers.