* UBS Global Wealth lifts S&P 500 2026 target to 7,900

from 7,500 pts

* Estée Lauder jumps after ending merger talks with Puig

* Kevin Warsh to be sworn in as Fed chair later in the

day

* Indexes up: Dow 0.6%, S&P 500 0.7%, Nasdaq 0.7%

(Updates to market open)

By Shashwat Chauhan and Medha Singh

May 22 (Reuters) - Wall Street's main indexes rose on

Friday, with the blue-chip Dow hitting a record high for the

first time since the Iran war began, as investors tracked

progress in talks to end the nearly three-month-old conflict

ahead of the long weekend.

Iran's foreign minister met the interior minister of

Pakistan to discuss proposals to end the conflict, media reports

said, with Tehran and Washington still at odds over Iran's

uranium stockpile and control over the Strait of Hormuz.

Global stocks have whipsawed since the conflict began in

late February, but hopes of an eventual resolution to the war,

optimism in the AI trade and resilient earnings growth have

propelled U.S. stocks to record highs this month.

"While key differences between the U.S. and Iran still need

to be resolved to end the war, the continuation of peace talks

remains a supportive factor for investors," said Peter Cardillo,

chief market economist at Spartan Capital Securities.

UBS Global Wealth Management raised its 2026 year-end target

for the S&P 500 to 7,900 from 7,500, citing resilient consumer

spending and seemingly insatiable demand for data center

infrastructure.

The market recovery, however, has faced some hurdles as

investors fret about the inflationary impact of surging oil

prices, pushing government bond yields higher around the world

and hitting risk appetite this week.

Treasury yields slipped on Friday with the 10-year U.S. note

yield easing to a one-week low of 4.54%.

Later in the day, Kevin Warsh will be sworn in as Federal

Reserve leader at the White House, taking over the reins from

Jerome Powell, a pivotal moment for monetary policy and the

American economy.

Volatility eased ahead of the three-day market holiday, with

U.S. markets shut on Monday for Memorial Day. The CBOE

volatility index hovered near a two-week low at 16.64.

At 09:42 a.m. ET, the Dow Jones Industrial Average

rose 315.07 points, or 0.63%, to 50,600.73, the S&P 500

gained 48.51 points, or 0.65%, to 7,494.23 and the Nasdaq

Composite gained 175.63 points, or 0.67%, to 26,468.72.

Ten out of the 11 major S&P 500 sector indexes were higher,

led by healthcare.

The price-weighted Dow notched its first intraday

record high since February 10, becoming the last of the three

main U.S. stock indexes to hit the milestone. A near 3% gain in

IBM ( IBM ) and a 3.4% rise in Salesforce ( CRM ) were among the

biggest boosts to the index.

The S&P 500 is on track for an eighth consecutive

weekly gain, which would mark its best winning streak since

December 2023.

Most megacap and growth stocks traded higher. Nvidia ( NVDA )

inched up 0.5%, a day after the stock fell 1.7% despite

providing a robust quarterly forecast.

Semiconductor stocks, a key driver of recent Wall Street

gains, also rose. The Philadelphia chip index rose 1.5%.

Estée Lauder surged 12% after the cosmetics maker and

Spanish perfumery Puig ended talks for a potential

merger.

Workday jumped 9.4% after the human resources

software provider exceeded expectations for first-quarter

revenue and profit.

Take-Two Interactive added 2.5% after the video

game company reiterated the November 19 launch date for the

highly awaited "Grand Theft Auto VI" game.

A final reading of the May U.S. consumer sentiment is also

due later in the day.

Advancing issues outnumbered decliners by a 1.89-to-1 ratio

on the NYSE and by a 2.27-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and no new lows

while the Nasdaq Composite recorded 74 new highs and 38 new

lows.