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Futures up: Dow 0.09%, S&P 500 0.01%, Nasdaq 0.01%

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Applied Digital ( APLD ) rises on quarterly revenue beat

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Levi Strauss slips after downbeat FY profit forecast

(Updates prices)

By Niket Nishant and Sukriti Gupta

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

on Friday, extending a pause after a blistering rally, while

investors awaited consumer sentiment data due later in the day

for fresh insights into the economy.

The earnings season that begins next week will be a crucial

litmus test for U.S. stock markets, but traders so far have

brushed off concerns about a bubble in equities.

Some analysts expect the AI trade, mostly concentrated in

tech so far, to spill over into energy and construction firms as

demand for data center buildout accelerates.

"I feel pretty confident that AI will broaden out to other

areas of the market. Investors are going to realize that the

companies that provide or create AI are one thing, but companies

that will be the beneficiaries are equally, if not more,

important," said Francis Gannon, co-chief investment officer at

Royce Investment Partners.

Also adding to the rally is the fear of missing out, as some

analysts say the nearly three-year-old bull market still has

room to run, especially if the Federal Reserve continues to

lower interest rates.

Recent data has reinforced expectations for easing. While

the government shutdown has delayed official releases, proxies

point to a weakening labor market, with layoffs tied to the

impasse likely to deepen the strain.

At 06:55 a.m. ET, Dow E-minis were up 41 points, or

0.09%, S&P 500 E-minis were up 0.5 point, or 0.01%, and

Nasdaq 100 E-minis were up 1.5 points, or 0.01%.

A preliminary reading of the University of Michigan's

consumer sentiment survey, due at 10:00 a.m. ET, will be in

focus. It could carry extra weight because of the official data

blackout.

Investors are also weighing developments in the Middle East,

where Israeli troops began pulling back from some parts of Gaza

on Friday under a ceasefire deal with Hamas. Signs of easing

tensions could lift sentiment by removing a long-standing

overhang on equities.

Among stocks, Intel ( INTC ) rose 1.9% in premarket trading,

after TD Cowen raised its price target on the stock. Data center

operator Applied Digital ( APLD ) surged 22.1%, a day after

posting better-than-expected revenue for the first quarter.

Levi Strauss shares slipped 6.6% after it forecast

annual profit below analysts' expectations.

Qualcomm ( QCOM ) fell 2.6% after China's market regulator

said the country has launched an antitrust investigation into

the semiconductor manufacturer over its acquisition of Israel's

Autotalks.

(Reporting by Niket Nishant and Sukriti Gupta in Bengaluru;

Editing by Anil D'Silva and Shilpi Majumdar)