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* Futures down: Dow 0.15%, S&P 500, Nasdaq 0.08% each

April 10 (Reuters) - U.S. stock index futures were

largely muted on Friday as investors stuck to the sidelines

ahead of a crucial inflation print, while assessing the

fragility of the Middle East truce.

The news of a two-week ceasefire agreement earlier this week

between the U.S. and Iran has put Wall Street indexes on track

for weekly gains. The S&P 500 is set for its biggest weekly jump

since November, while the Dow is poised for its sharpest gain

since June.

A March reading of the Consumer Prices Index (CPI) will be

in the spotlight, scheduled for release at 8.30 a.m. ET. It is

expected to show the impact of elevated energy prices from the

Iran conflict on the U.S. economy.

Consumer prices likely recorded their biggest increase in

nearly four years in March, with economists polled by Reuters

expecting the CPI to come in at 3.3% on an annual basis, which

could further dim hopes of easing from the Federal Reserve this

year.

Money market participants are not pricing in any policy

easing in 2026. They had expected two reductions before the war

broke out, per CME Group's FedWatch Tool. At a point during the

conflict, they had raised bets on an interest rate hike in

December.

"While Fed officials expected higher oil prices to delay the

anticipated decline in US inflation toward their 2% target, we

continue to believe that the central bank remains on track to

cut rates later this year," said analysts at UBS Global Wealth

Management.

They expect "sequential core inflation to cool" in the

coming months as tariff effects fade and falling labor demand

potentially leads to an uptick in the unemployment rate, which

could strengthen the case for cuts.

At 04:45 a.m. ET, Dow E-minis were down 72 points,

or 0.15%, S&P 500 E-minis were down 5.75 points, or

0.08% and Nasdaq 100 E-minis were down 21.25 points, or

0.08%.

Investors also scrutinized developments in the Iran

conflict, as the two-week ceasefire between the U.S. and Iran

showed signs of strain ahead of the first round of talks

scheduled for Saturday.

However, markets drew comfort from Israeli Prime Minister

Benjamin Netanyahu's comments that he is seeking direct talks

with Beirut, helping Wall Street's main indexes close higher on

Thursday.

A preliminary reading of the University of Michigan's

consumer sentiment survey for April will be watched after

markets open on Friday.

(Reporting by Purvi Agarwal in Bengaluru; Editing by Shinjini

Ganguli)