* Futures up: Dow 0.53%, S&P 500 0.67%, Nasdaq 1.09%

* Chip stocks lead gains

* Eli Lilly ( LLY ) rises after agreeing to buy three vaccine

developers

* Consumer confidence data due at 10 AM ET

(Updates before market open)

By Twesha Dikshit and Utkarsh Hathi

May 26 (Reuters) - Wall Street's main indexes were

poised to open higher on Tuesday, catching up after a public

holiday, as optimism in AI-related stocks offset some concerns

over Middle East peace talks following recent U.S. strikes on

Iran.

Iran's Tasnim news agency reported that Tehran is seeking

the release of $24 billion of Iranian funds frozen overseas in

the deal that's being negotiated with the U.S.

U.S. Secretary of State Marco Rubio said on Tuesday the deal

could "take a few days," while President Donald Trump said in a

Truth Social post on Monday that talks with Iran were going

"nicely."

"It's cautious optimism in markets today with a singular

focus on planning an off-ramp for this war, but with an

understanding that it will take a while for energy prices and

inflation (to) come back to earth," said Art Hogan, chief market

strategist at B Riley Wealth.

Brent crude oil rose as much as 2% but remained below $100 a

barrel, and global stocks wavered as uncertainty lingered over

whether a deal would be reached to open up shipping flows

through the Strait of Hormuz.

Semiconductor stocks, which have surged on AI-driven demand,

led gains in premarket trading. Marvell Technology ( MRVL ) rose

6.8%, Micron climbed 7%, while Intel ( INTC ), and

Qualcomm ( QCOM ) added 1.6% and 2.5%, respectively.

At 08:06 a.m. ET, Dow E-minis were up 271 points, or

0.53%, S&P 500 E-minis were up 50.25 points, or 0.67%,

and Nasdaq 100 E-minis were up 321.75 points, or 1.09%.

Wall Street has been trading at record highs, with upbeat

earnings and confidence in AI trade driving equities higher

despite the ongoing conflict with Iran.

The blue-chip Dow became the last index to hit a

record high on Friday, its first since the Iran war began, while

the S&P 500 posted its best winning streak since December

2023.

With the earnings season nearly over, first-quarter earnings

growth is expected to be 29% year-on-year compared with the

16.1% estimated a month ago, according to LSEG data from

Friday.

Kevin Warsh was sworn in as chair of the Federal Reserve on

Friday. His appointment comes amid growing concerns about

inflation, driven by higher oil prices, which have added to

expectations of tighter global monetary policy.

Markets currently expect the Fed to keep rates on hold for

the rest of the year, with a 25 bps rate hike seen in December.

U.S. consumer confidence data for May is expected later in

the day, with higher gasoline prices due to the Middle East

conflict expected to weigh on consumer sentiment.

Before the bell, Eli Lilly ( LLY ) advanced 1.2% after the

drugmaker said it would buy three vaccine developers in deals

worth up to nearly $4 billion in combined value.

Pony AI's shares climbed 17.5% after the company

said it plans to expand its robotaxi fleet.

(Reporting by Twesha Dikshit and Utkarsh Hathi in Bengaluru;

Editing by Shinjini Ganguli)