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S&P 500 futures at record highs

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US weekly jobless claims increase moderately

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Futures: Dow flat, S&P 500 up 0.17%, Nasdaq up 0.37%

(Updated at 8:45 a.m. ET/ 1345 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Nov 7 (Reuters) - The S&P 500 and the Nasdaq were set to

open higher in the run-up to an interest-rate decision from the

Federal Reserve on Thursday, extending a sharp rally sparked 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

commentary for clues on the future path of monetary easing.

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 and S&P 500 notched their biggest

one-day rise since November 2022, while the Nasdaq logged its

best day since February.

Dow E-minis were down 13 points, or 0.03%, S&P 500

E-minis were up 10.25 points, or 0.17%, and Nasdaq 100

E-minis were up 78.25 points, or 0.37%.

Futures tracking the Russell 2000 slipped 0.2%,

after the small-cap index also logged its best one-day gain in

nearly two years.

Meanwhile, data showed U.S. weekly jobless claims rose

marginally last week, suggesting no material change in labor

market conditions.

Initial claims for state unemployment benefits increased to

221,000 for the week ended Nov. 2, in line with economists'

expectations polled by Reuters.

Traders have trimmed their bets to just two rate cuts in

2025 on consistently robust economic data, while also taking

into account the chances of higher inflation stemming from

Trump's proposed tariffs and government spending.

"The Fed's commentary about the rate-cut outlook will be

particularly important for markets, given the recent

post-election surge in bond yields, which undoubtedly

complicates the Fed's efforts to move to a less restrictive

policy stance," said Glen Smith, chief investment officer, GDS

Wealth Management.

"The Fed may pause its pace of rate cuts in December and

throughout much of 2025 as inflation slows and the economy

continues to remain strong."

Focus is also on whether Republicans could win control of

both houses of Congress, making it easier for Trump's policies

to be enacted.

Meanwhile, rate-sensitive equities are facing some pressure

as Treasury yields hovered around multi-month highs after

Trump's win.

Stocks that surged after his sweeping victory gave back

gains in premarket trade, with Trump Media & Technology ( DJT )

losing 14%.

Qualcomm ( QCOM ) shares jumped 5.6% after the chipmaker

forecast current-quarter results above estimates, while

U.S.-listed shares of chip designer Arm Holdings fell 3%

as its quarterly forecasts disappointed investors.

Vaccine maker Moderna ( MRNA ) gained 7.5% after reporting a

surprise third-quarter profit on higher COVID-19 vaccine sales.

Warner Bros Discovery ( WBD ) climbed 5% after a surprise

third-quarter profit, while Ralph Lauren ( RL ) rose 8.2% after

raising its annual sales forecast.

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

six-week low.