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Amedisys ( AMED ) gains after extending UnitedHealth ( UNH ) merger

deadline

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All three main indexes set for weekly gains

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Futures down: Dow 0.40%, S&P 500 0.41%, Nasdaq 0.43%

(Updates before markets open)

By Medha Singh and Purvi Agarwal

Dec 27 (Reuters) - Wall Street's main indexes were set

for a lower open on Friday at the end of an upbeat

holiday-shortened week driven by expectations around a

traditionally strong period for markets.

Yields on U.S. Treasury notes were higher on the day, with

the ones on the benchmark 10-year note hovering near

an over seven-month high it hit on Thursday. It was last at

4.595%.

At 08:32 a.m. ET, Dow E-minis were down 175 points,

or 0.40%, and S&P 500 E-minis were down 25 points, or

0.41%.

Futures tracking the tech-heavy Nasdaq 100 were down

93.75 points, or 0.43%, as Nvidia ( NVDA ) dropped 0.6% in

premarket trading and Tesla shed 0.8%.

"It feels like U.S. equity markets and investors here are

tepid heading into the end of the year. Nobody wants to be

making any major moves before 2025 when the new administration

comes in," said Clayton Allison, portfolio manager at Prime

Capital Financial.

The S&P 500 has recovered most of last week's losses

that stemmed from the U.S. Federal Reserve projecting fewer

interest rate cuts in 2025 and hurting risk appetite.

The benchmark index is now eyeing its best week in seven,

and is about 1% below its all-time high of 6,099.97 points

clinched on Dec. 6.

With three sessions left to close out the year, investors

are hoping for new all-time highs in the stock-buying season

called the "Santa Claus rally" - the last five sessions of

December and the first two of January.

Since 1969, the S&P 500 has climbed 1.3% on average in the

seven-day trading period, according to the Stock Trader's

Almanac.

"If yesterday is any indication, we are kind of starting off

not great on a Santa rally. I feel like we got a lot of it

post-election... today is going to give us a pretty good

indication but it feels like more market participants are pretty

cautious," said Allison.

U.S. equities have broadly extended their gains from a

stellar November, when Donald Trump won the U.S. presidential

election, as hopes of pro-business policies under the incoming

administration stoked optimism.

Trading volumes in this holiday-shortened week have been

below the average of the last six months and are likely to

remain subdued until Jan. 6. The next major focus for markets

will be the December employments report due on Jan. 10.

Among individual movers, Amedisys ( AMED ) gained 4.4% after

the home health service provider and insurer UnitedHealth ( UNH )

extended the deadline to close their $3.3 billion

merger.

On Thursday, the Dow closed higher in thin year-end

trading, recouping some losses from its recent ten-session

losing streak, while higher U.S. Treasury yields weighed on some

heavyweight tech and growth stocks.