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

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

*

Futures higher: Dow 0.18%, S&P 500 0.19%, Nasdaq 0.23%

Nov 7 (Reuters) - U.S. stock futures edged higher ahead

of an interest-rate decision by the Federal Reserve on Thursday,

building on a sharp rally set off by Donald Trump's stunning

comeback as U.S. president for a second time.

Traders have about fully priced in a 25-basis point rate

cut, but will keep a close watch on the central bank's policy

statement for any clues on the future path of monetary easing.

"Futures prices suggest it will be a much quieter day today

on the US markets, albeit still with some gains," said Russ

Mould, investment director at AJ Bell.

"Investors might simply be taking stock of events and

waiting to see the scale of a rate cut from the Fed."

Investor expectations that Trump would lower corporate taxes

and loosen regulations had in the previous session lifted all

three major indexes to a record high.

The Dow, S&P 500 and small-cap Russell 2000

notched their biggest one-day rise since November 2022,

while the Nasdaq hit its best day since February.

At 5:08 a.m. ET, Dow E-minis were up 82 points, or

0.18%. U.S. S&P 500 E-minis were up 11.5 points, or

0.19% and Nasdaq 100 E-minis were up 49 points, or

0.23%.

Futures tracking the small cap index were up 0.3%,

trading at a near three-year high.

Traders are betting the Fed will cut its policy rate only

twice in 2025 against the backdrop of consistently robust

economic data and chances of higher inflation due to Trump's

proposed tariffs and government spending.

Focus is also on whether Republicans could retain control

in the U.S. House of Representatives after winning a majority in

the Senate, which would make it easier for Trump's policies to

be enacted.

Meanwhile, rate-sensitive equities could come under some

pressure as Treasury yields soared after Trump's election.

Some stocks that soared after his sweeping win gave back

gains, with Trump Media & Technology ( DJT ) losing 9.5%, and

Tesla edging 0.7% lower after a nearly 15% gain on

Wednesday.

Qualcomm ( QCOM ) shares jumped 7.9% after the chipmaker

forecast current-quarter sales and profit to exceed Wall Street

estimates.

The VIX, Wall Street's "fear gauge," was trading at a

six-week low.

Weekly initial jobless claims data is due at 8:30 a.m. ET.