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May PPI falls unexpectedly, weekly jobless claims at

10-month

high

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Tesla up as Musk says shareholders to approve his $56 bln

pay

package

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Broadcom ( AVGO ) soars after FY forecast raise on AI chips

strength

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Futures: Dow down 0.19%, S&P up 0.22%, Nasdaq up 0.64%

(Updated at 8:50 a.m. ET/1250 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 13 (Reuters) - Futures for the S&P 500 and Nasdaq

indexes extended gains on Thursday while the Dow pared losses,

as lower-than-forecast producer inflation data fanned

expectations of interest rate cuts from the Federal Reserve.

A rally in tech stocks persisted in premarket trading,

putting the Nasdaq on track for a record-high open.

Shares of Broadcom ( AVGO ) soared 13.5% after the company

raised its forecast for revenue from chips designed for

artificial intelligence operations, and announced a 10-for-1

forward stock split. Peer Nvidia ( NVDA ) rose 2.7%.

A Labor Department report showed the U.S. producer price

index (PPI) unexpectedly fell 0.2% month-on-month in May,

compared with a 0.1% increase expected by economists polled by

Reuters.

Meanwhile, the number of Americans filing new claims for

unemployment benefits

increased to a 10-month high last week.

Markets lifted bets on a September start to rate cuts to

above 70% from 60% before the data, according to the CME's

FedWatch tool. That was despite policymakers projecting only one

rate cut this year.

Investor sentiment was also supported by

softer-than-expected U.S. consumer inflation data on Wednesday

and Fed Chairman Jerome Powell's acknowledgement that progress

had been made in tackling price pressures.

"PPI was a good number ... it speaks to the Fed's

comments that inflation has shown signs of moderating, but they

still need to see more signs of moderation in inflation," said

Robert Pavlik, senior portfolio manager at Dakota Wealth.

"But we're moving in the right direction and it speaks to

the potential for a rate cut of most likely in September,"

Pavlik said.

UBS Global Research said it now expects the Fed to cut

interest rates in December instead of September, while Goldman

Sachs and Morgan Stanley continue to expect the first cut in

September.

Also on tap, New York Fed President John Williams will

moderate a panel later in the day.

Benchmark Treasury yields extended losses from the previous

session, helping lift stocks further.

At 8:50 a.m. ET, Dow e-minis were down 85 points,

or 0.22%, S&P 500 e-minis were up 10.25 points, or

0.19%, and Nasdaq 100 e-minis were up 120.5 points, or

0.62%.

Apple ( AAPL ) edged down 0.2%, after jumping to an

all-time-high in the previous session and briefly overtaking

Microsoft as the world's most valuable company.

Tesla leapt 7% after Elon Musk said company

shareholders were voting to approve his $56 billion pay package

and to move the electric-vehicle maker's legal home to Texas.

Virgin Galactic ( SPCE ) plunged 10.1%, a day after

announcing a 1-for-20 reverse stock split.