* Bristol Myers Squibb ( BMY ) up on report of merger talks

* SpaceX, AMD among companies reporting this week

* Fed's Williams expects inflation to ease, Reuters reports

* Futures up: Dow 1.12%, S&P 0.55%, Nasdaq 0.16%

(Updates to before markets open)

By Johann M Cherian and Shashwat Chauhan

Aug 3 (Reuters) - Main U.S. stock indexes were set to open

higher on Monday as signs of de-escalating tensions in the

Middle East dragged down crude prices, while investors prepared

for another week packed with earnings and economic data.

Traders also weighed a potential consolidation in the

healthcare sector after a report said Bristol Myers Squibb ( BMY )

and AstraZeneca ( AZN ) held preliminary merger talks. A

deal could form one of the world's biggest drugmakers, worth

nearly $400 billion.

The U.S. company's shares gained 4.1% in premarket trading,

while its UK rival slipped 6.3%.

In geopolitics, U.S. President Donald Trump said on Sunday

that talks with Iran to reopen the Strait of Hormuz would take

place sometime on Monday. Iran, however, contradicted him.

Brent crude prices slid 6.6% while the yield on the

two-year Treasury note, reflecting short-term

interest rate expectations, dipped 5.4 basis points. Higher

energy costs since the start of the conflict have fueled

uncertainty over repercussions on the global economy.

After earnings from Amazon ( AMZN ) and Microsoft ( MSFT )

last week alleviated some concerns about the lack of evidence

that elevated AI spending is paying off, investors will be keen

on how other major names fare.

"More government debt, increased issuance and persistent

inflation have all contributed to a higher cost of capital,

leaving earnings as the key driver of returns. We think this

trend will continue," Goldman Sachs analysts said.

SpaceX will report on Tuesday its first quarterly

results since its public debut, with scrutiny on its AI spending

and profits from its Starlink satellite communications network.

Its shares, which have been trading below their $135 offering

price for nearly three weeks, eased 1.4%.

Other AI-linked companies reporting this week include

Palantir ( PLTR ), Advanced Micro Devices ( AMD ), and data

storage companies SanDisk ( SNDK ) and Western Digital ( WDC ).

Palantir ( PLTR ) gained 2.9%, while AMD lost 2.3%; SanDisk ( SNDK ) and

Western Digital ( WDC ) lost over 3% each, while software stocks on the

Dow such as Salesforce ( CRM ) and Microsoft ( MSFT ) gained 3%

and 2%, respectively.

Micron lost 3.9% after Reuters reported that Chinese

rival CXMT is considering a second memory-chip plant

in Beijing and is in financing talks with a tech manufacturing

hub backed by the local government.

At 8:38 a.m. ET, Dow E-minis were up 589 points,

or 1.12%, and S&P 500 E-minis were up 41 points,

or 0.55%. Nasdaq 100 E-minis were up 46.75 points,

or 0.16%.

Wall Street had a rough July, bogged down by global concerns

about the trajectory of artificial intelligence, future interest

rate hikes and a raging conflict in the Middle East.

Adding to the uncertainty, Federal Reserve chair Kevin Warsh

raised the idea of scheduling fewer rate-setting meetings, a

report said - in line with his plan to reduce Fed rate guidance.

New York Fed President John Williams said he was optimistic

that inflation pressures are on track to ease gradually, Reuters

reported. Traders are pricing in a 62.7% chance that the central

bank would increase interest rates in September, the CME Group's

FedWatch Tool showed.

Hotel operator Marriott International ( MAR ) fell 3.9%

after forecasting third-quarter profit below expectations, while

Tyson Foods ( TSN ) dropped 2.5% after cutting its annual profit

forecast.

The week is also packed with several labor market reports,

including the official nonfarm payrolls figures due on Friday. A

business activity survey later in the day would give markets a

clearer picture about the health of the manufacturing sector

during July.

Traders also kept an eye on U.S.-Japan intervention in

currency markets to halt the yen's slide.

(Reporting by Johann M Cherian and Shashwat Chauhan in

Bengaluru; Editing by Joyjeet Das)