* Futures: Dow up 1.22%, S&P up 0.34%, Nasdaq up 1.1%

* Dow to hit fresh record high at open

* Palantir ( PLTR ) up after raising annual revenue forecast

* Caterpillar ( CAT ) rises after reporting higher Q2 profit

(Updates to before markets open)

By Johann M Cherian and Shashwat Chauhan

Aug 4 (Reuters) - U.S. main stock indexes were set to open

higher on Tuesday after strong forecasts from Caterpillar ( CAT ) and

Palantir ( PLTR ) reassured investors about AI-driven demand, while hopes

for an imminent deal to end the Middle East conflict sent crude

prices lower.

The benchmark S&P 500 is about 21 points from hitting

its first record high since June, while the blue-chip Dow

was set to hit a fresh all-time high at the open.

Palantir Technologies ( PLTR ) gained 16% in premarket

trading after raising its annual revenue forecast again, while

chipmaker On Semiconductor added 7.6% after forecasting

quarterly revenue above expectations.

Caterpillar ( CAT ), seen as a bellwether for the global

industrial economy, gained 7.5% after raising its annual revenue

growth forecast, benefiting from a buildout of AI data centers

that has spurred demand for its power-generation and

construction equipment.

Investors have been scrutinizing results from AI-linked

companies this earnings season for signs that their

billion-dollar investments are yielding returns. Strong results

from AI leaders Microsoft ( MSFT ) and Amazon ( AMZN ) last week

were a relief and have underpinned gains on Wall Street

following a turbulent July.

"Momentum-driven sectors often overshoot in both directions.

But it is important not to confuse a momentum unwind with a

fundamental deterioration," said Brian Levitt, chief global

market strategist at Invesco.

In geopolitics, crude prices fell over 2% to $81.7 per

barrel after a Qatari official said efforts to secure a

diplomatic resolution to the conflict were continuing, while

U.S. Treasury Secretary Scott Bessent said a deal with Iran to

reopen the Strait of Hormuz could come as soon as Tuesday or

Wednesday.

At 8:33 a.m. ET, Dow E-minis were up 649 points, or

1.22%, and S&P 500 E-minis were up 26 points, or 0.34%.

Nasdaq 100 E-minis were up 317 points, or 1.1%.

Among other AI-linked stocks, Micron added 4.6%,

Nvidia ( NVDA ) rose almost 1.8% and Marvell ( MRVL ) climbed

8.2%.

Overall, this earnings season has so far been better than

historical standards. Of the 304 companies in the S&P 500 that

have reported second-quarter earnings as of Friday, 85.2% have

beaten estimates, versus the long-term average of 67.5%.

Elon Musk's SpaceX will release its first earnings

report since its public debut after markets close. The company's

shares were up 2.2%.

Snap jumped 5.9% after beating second-quarter

revenue estimates, thanks to increased advertising spending

during the FIFA World Cup and stronger campaign activity from

large advertisers in North America.

Shares of U.S. photonic firms Coherent and Lumentum ( LITE )

added 13% each after Reuters reported the Trump

administration is drafting a ban on U.S. imports of new models

of Chinese data center components.

McDonald's was flat after reporting disappointing

results, while Pfizer ( PFE ) added 1% after its upbeat

quarterly results.

ECONOMIC DATA

The focus later in the day will shift to economic data.

The Labor Department's Job Openings and Labor Turnover Survey,

scheduled at 10 a.m. ET, is expected to show the economy created

about 7.4 million jobs in June, lower than the 7.6 million in

the month before.

Other reports on factory orders and trade for June, along

with remarks by Kansas City Fed President Jeffrey Schmid, could

also offer insights into the health of the economy.

Investors will parse the reports to also gauge the outlook

for interest rates at a time when the U.S.-Iran standoff in the

Middle East is keeping crude prices elevated, while the Federal

Reserve has offered little guidance on monetary policy.

Traders see a 63.4% chance that the central bank will hike

rates by at least 25 basis points when it meets next month, the

CME FedWatch Tool showed.