(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

* Futures up: Dow 0.86%, S&P 500 0.67%, Nasdaq 0.64%

June 12 (Reuters) - U.S. stock index futures rose on Friday,

buoyed by expectations for an imminent end to the Middle East

conflict, while investors geared up for the market debut of Elon

Musk's SpaceX, which is estimated to be Wall Street's biggest

public listing in history.

U.S. President Donald Trump's comments on Thursday, which

suggested that a deal to end the Middle East conflict and reopen

the crucial Strait of Hormuz could be signed as early as this

weekend, lifted sentiment globally, even as Tehran said that a

final decision was pending.

SpaceX is expected to start trading on the Nasdaq for the

first time later in the day and is likely to be immediately

ranked as the seventh biggest publicly listed U.S. company, with

a potential valuation of $1.75 trillion.

The conglomerate, which also includes Starlink and xAI, has

already defied some Wall Street conventions. Index providers

such as Nasdaq and FTSE Russell have tweaked their entry

requirements for its inclusion, while the company also set its

stock price at $135, reflecting Musk's sway over the IPO.

Only about 3%-4% of SpaceX's shares are expected to

be available for trading, and with the company listed on only

one of the three main U.S. indexes, it could add to market

volatility.

Some analysts have also voiced caution over its

fundamentals.

"As things stand today, investors are essentially buying a

company whose core business is launching satellites, which

remains its largest source of revenue," said Ismael Garcia

Puente, deputy director of investment strategy at MAPFRE AM.

"Its technology and AI-related businesses are still

operating at a loss. We need to see how these segments evolve

before we can assess their long-term profitability."

SpaceX posted over $4 billion in annual losses last year.

Shares of other space stocks have soared this quarter in the

lead-up to the debut and were also up in premarket trading on

Friday.

Rocket Lab ( RKLB ) added 7%, Intuitive Machines ( LUNR )

rose 7% and Planet Labs added 3.7%, while funds holding

shares of SpaceX such as Fundrise Innovation Fund rose

6.6%, while Destiny Tech100 soared 11.4%.

At 05:55 a.m. ET, Dow E-minis were up 439 points, or

0.86%, S&P 500 E-minis were up 49.5 points, or 0.67%.

Nasdaq 100 E-minis were up 190.5 points, or 0.64%.

The three main U.S. stock indexes are set for a muted end to

the week, much of which was marked by uncertainty surrounding

the Iran conflict and concerns that a rally in AI stocks has

gone too far.

The S&P 500 is down nearly 3% from its last record high, and

earlier this week the technology index confirmed a

correction. Several analysts suggested that some of the weakness

in U.S. stocks and bitcoin could be due to traders trimming

holdings ahead of SpaceX's debut.

Data earlier this week also suggested that inflation

pressures were mounting, driven by elevated energy costs

stemming from the Mideast conflict.

However, since Trump's remarks in the previous session, oil

prices have slid below $90 a barrel and traders have pushed

their expectations for an interest rate hike by the Federal

Reserve to December from October earlier this week, the CME

Group's FedWatch tool showed.

Airlines such as Alaska and Delta rose over

1% each on lower energy prices.

Adobe slid 5.2% after the exit of CFO Dan Durn.