* Futures up: Dow 0.12%, S&P 500 0.3%, Nasdaq 0.82%

* GlobalFoundries ( GFS ) falls on report of Mubadala share sale

* Zscaler ( ZS ) plunges after downbeat Q4 forecast

* Goldman Sachs ( GS ) lifts S&P 500 year-end forecast to 8,000

(Updates before market open)

By Twesha Dikshit and Utkarsh Hathi

May 27 (Reuters) - Wall Street's main indexes were set

to extend gains on Wednesday, helped by sustained AI-driven

momentum, while investors were cautiously optimistic that the

U.S. and Iran would reach a deal.

A fragile truce between Tehran and Washington remained in

place despite recent U.S. strikes near the Strait of Hormuz,

which Iran called a "gross violation" of the ceasefire

agreement.

"Markets have looked past any lack of progress (in peace

talks) that we've seen over the past few weeks and continue to

believe that a diplomatic solution is more likely than a

re-escalation to where the conflict began," said Brock Weimer,

analyst on investment strategy at Edward Jones.

In the "longer term, the outlook remains supportive for

these companies that are exposed to the AI trade and the

earnings growth that they've shown has backed that up," Weimer

added.

At 08:24 a.m. ET, Dow E-minis were up 61 points, or

0.12%, S&P 500 E-minis were up 22.75 points, or 0.3%,

and Nasdaq 100 E-minis were up 247.75 points, or 0.82%.

Both the S&P 500 and the Nasdaq closed at

record highs on Tuesday, driven by renewed confidence around AI,

as Micron surpassed $1 trillion in market value for the first

time.

Shares of the memory chipmaker jumped 8.5% in

premarket trading. Peers SanDisk ( SNDK ), Western Digital ( WDC )

and Seagate Technology ( STX ) were up between 4.1% and

6.6%.

A strong earnings season and expectations of about 29%

year-on-year growth in the first quarter have aided the rally on

Wall Street, with the blue-chip Dow Jones becoming the

last major index to hit a record high on Friday.

Goldman Sachs ( GS ) raised its 2026 year-end forecast for the S&P

500 to 8,000 from 7,600, citing continued strength in corporate

earnings.

Markets will next look toward the personal consumption

expenditures index data on Thursday. The Federal Reserve's key

inflation measure could provide fresh clues on the monetary

policy path forward under new chair Kevin Warsh.

Money markets currently expect the Fed to keep rates steady

for the rest of the year, with some pricing in a 25 basis point

hike in December.

Among early movers, Zscaler ( ZS ) tumbled 25% after the

cloud security firm projected fourth-quarter revenue below

expectations.

GlobalFoundries ( GFS ) fell almost 8% after Bloomberg News

reported that majority owner Mubadala Investment Company was

seeking to raise $1.91 billion from an unregistered block sale

of GFS shares.

Bath & Body Works ( BBWI ) jumped 10.7% after the retailer

reported first-quarter sales and profit above expectations.

(Reporting by Twesha Dikshit and Utkarsh Hathi; Editing by

Shinjini Ganguli and Joyjeet Das)