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Futures up: Dow 0.24%, S&P 500 0.24%, Nasdaq 0.31%

June 27 (Reuters) - U.S. stock index futures climbed on

Friday, putting the S&P 500 and the Nasdaq on track for record

highs, as investors awaited a key inflation reading amid growing

expectations of a dovish monetary policy from the Federal

Reserve this year.

Personal Consumption Expenditure data - the U.S. central

bank's preferred inflation gauge - for May is due to be released

at 08:30 a.m. ET and will be scrutinized for a better

understanding of the Fed's interest-rate path as President

Donald Trump's tariffs weigh on prices.

As the ceasefire in the Middle East holds, investor focus

has turned to the prospect of a dovish Fed after the Wall Street

Journal reported that Trump has toyed with the idea of selecting

and announcing Fed Chair Jerome Powell's replacement by

September or October.

A spate of economic data this week, including a

weaker-than-expected first quarter GDP reading as well as

jobless claims reaching multi-year highs, has supported the case

for the Fed to cut borrowing costs this year.

Traders now price in a 20% chance of a rate cut in July,

compared with 12.5% last week, according to CME Group's FedWatch

tool.

At 05:25 a.m. ET, Dow E-minis were up 103 points, or

0.24%, S&P 500 E-minis were up 15 points, or 0.24%, and

Nasdaq 100 E-minis were up 70.25 points, or 0.31%

Nike's ( NKE ) shares rose 9.6% in premarket trading after

the retailer forecast a smaller-than-expected drop in

first-quarter revenue.

Retailer Lululemon Athletica ( LULU ) rose 1.7% after Nike's ( NKE )

results.

The benchmark S&P 500 and the Nasdaq are on

track for their best weekly performance in six weeks while the

blue-chip Dow is set for a weekly advance, if gains hold.

Adding to the upbeat mood, Washington reached an agreement

with China on expediting rare earth shipments to the United

States, a White House official said, days ahead of the July 9

deadline for Trump's "reciprocal" tariffs.

Also on tap is the final reading of consumer sentiment for

June, measured by the University of Michigan Surveys of

Consumers, due at 10:00 a.m. ET.

Remarks from New York Fed President John Williams, Cleveland

Fed President Beth Hammack and Fed Board Governor Lisa Cook are

expected later in the day.