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* Futures: Dow, S&P 500 and Nasdaq flat

May 29 (Reuters) - U.S. stock index futures were steady

on Friday, after closing at record highs in the previous

session, with markets awaiting details on reports that the U.S.

and Iran has reached a deal.

Sources told Reuters that Washington and Tehran had agreed

to extend their ceasefire and lift restrictions on shipping

through the Strait of Hormuz, but President Donald Trump was yet

to approve it.

"Markets are heading into the weekend in a good position as

risk appetite has improved as geopolitical fears ease and

inflation data avoids a major upside surprise," said Daniela

Hathorn, senior market analyst at Capital.com.

"However, positioning remains optimistic, valuations are

elevated and much of the recent rally still relies on

assumptions that tensions continue to de-escalate and earnings

remain resilient. That means investors are likely to remain

highly sensitive to both geopolitical headlines and incoming

inflation data in the weeks ahead."

At 04:46 a.m. ET, Dow E-minis were up 37 points, or

0.07%, S&P 500 E-minis were up 2.5 points, or 0.03%, and

Nasdaq 100 E-minis were down 6 points, or 0.02%.

Despite some concerns surrounding the economic impact of the

Iran war on inflation and global growth, Wall Street's major

indexes have been on a record run driven by revived optimism

around AI and strong earnings growth expectations.

Dell surged 38.5% before the bell, after raising

full-year profit and revenue forecasts. Peers Hewlett Packard

Enterprise ( HPE ) and Super Micro Computer ( SMCI ) gained

17.2% and 11%, respectively.

The S&P 500 was on track for a ninth consecutive

weekly gain, its longest winning streak since December 2023. The

Dow Jones and the Nasdaq were also set to end the

week higher.

Economic data on Thursday showed U.S. inflation increased at

its fastest pace in three years in April, while U.S. GDP for the

first-quarter was revised lower to a 1.6% annual rise.

Money markets expect the Federal Reserve to keep interest

rates steady for the rest of the year, with some expectations of

a 25 bps hike in December.

U.S. central bankers have said in recent days that there

might be a case for raising interest rates if inflation does not

ease soon, while expressing skepticism over AI's ability to aid

that process.

Investors will keep an eye on comments from Fed presidents

Anna Paulson, Neel Kashkari and Mary Daly through the day to

gauge monetary policy path forward.

Among other movers, Gap shares tumbled 15% after the

apparel retailer cut its annual sales forecast, signaling

pressure from budget-strained Americans.

Okta ( OKTA ) rose 8.1% after the digital identity

verification firm posted first-quarter revenue above

expectations.

(Reporting by Twesha Dikshit; Editing by Joyjeet Das)