*

Futures up: Dow 0.73%, S&P 500 0.66%, Nasdaq 0.67%

*

Fed's monetary policy announcement due at 2 pm ET

*

AMD rises after upbeat Q2 revenue forecast

*

Disney ( DIS ) shines as earnings top expectations

(Updates with results from Disney ( DIS ), Uber ( UBER ))

By Purvi Agarwal and Johann M Cherian

May 7 (Reuters) - U.S. stock index futures rose on

Wednesday as hopes of a de-escalation in trade tensions with

Beijing firmed, while investors awaited the Federal Reserve's

decision on interest rates that is expected later in the day.

Washington announced late on Tuesday that representatives of

the two countries would meet over the weekend in Switzerland for

ice-breaker trade discussions.

The meetings will follow weeks of tit-for-tat tariffs that

roiled financial markets and flagged concerns about global

economic growth.

Mixed signals from the world's two biggest economies on the

status of the negotiations left markets in a state of

uncertainty, pushing many companies to shelve their forecasts.

The U.S. central bank, meanwhile, adopted a wait-and-watch

approach despite signs of slowing growth.

President Donald Trump's administration has said potential

deals with major trading partners are underway, but markets are

yet to see tangible results on that front.

At 07:05 a.m. ET, S&P 500 E-minis were up 37.25

points, or 0.66%, Nasdaq 100 E-minis were up 133.25

points, or 0.67%, Dow E-minis were up 299 points, or

0.73%.

The Federal Reserve is set to announce its policy decision

on Wednesday afternoon and is widely expected to hold interest

rates steady.

Traders are now roughly pricing in a rate cut by July,

according to data compiled by LSEG, after a mixed bag of

economic data last week signaled a slowing economy and a

resilient labor market.

Comments from policymakers will be scrutinized for clues on

how they plan to approach monetary policy easing this year, amid

Trump's repeated calls for lower interest rates and criticism of

Fed Chair Jerome Powell, which had spooked investors in April.

"The Fed chair will need to balance guiding markets about

the future of monetary policy and defending the Fed from

pressure from the administration," said Kathleen Brooks,

research director at trading platform XTB.

"A hawkish lean from the Fed could spook markets and remind

us that the recent market rally was a correction in a

downtrend," Brooks said, adding that markets were expecting just

that from Powell.

Wall Street ended lower for the second straight session on

Tuesday after the U.S. administration failed to provide clarity

on the trade front.

The S&P 500 is more than 8% away from its record high

notched in February, even though all indexes have recouped

declines logged since Trump's "Liberation Day" reciprocal

tariffs announcement on April 2.

Advanced Micro Devices ( AMD ) was up 1.7% in premarket

trading after the chipmaker forecast revenue for the second

quarter above Wall Street estimates.

Walt Disney's ( DIS ) quarterly results

topped Street expectations

, helped by increased visitor spending at its U.S. theme

parks and a surge in streaming customers, sending its shares up

5%.

Uber Technologies ( UBER ) dropped 5.2% as the

ride-hailing and food delivery company

missed quarterly revenue

expectations and said it anticipates a 1.5%

currency-related drag on second-quarter gross bookings growth.

Arista Networks ( ANET ) fell 5% after its quarterly report,

while Marvell Technology ( MRVL ) lost 7% after narrowing its

forecast for the first quarter of 2026 and postponing its

investor day.