(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Futures up: Dow 0.03%, S&P 500 0.15%, Nasdaq 0.17%

*

Recursion Pharmaceuticals ( RXRX ) rises after 20% staff reduction

*

Second day of US-China trade talks being held in London

(Updates before markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 10 (Reuters) - Wall street's main indexes were set

for a slightly higher open on Tuesday as investors awaited the

outcome of ongoing trade talks between the United States and

China aimed at cooling a tariff dispute that has bruised global

markets this year.

U.S. Commerce Secretary Howard Lutnick said trade talks with

China were going well as officials from the two sides met for a

second day in London.

Investors are hoping for an improvement in ties after the

relief around a preliminary deal struck last month gave way to

fresh doubts when Washington accused Beijing of blocking exports

critical to sectors such as aerospace, semiconductors and

defense.

White House economic adviser Kevin Hassett said on Monday

the U.S. was likely to agree to lift export controls on some

semiconductors in return for China speeding up the delivery of

rare earths.

"I think these issues will be resolved, but I think it's

still early days ... but the fact that they're talking certainly

is positive," said Mark Malek, chief investment officer at

Siebert Financial.

"We're not making progress yards at a time, but inches

at a time."

At 08:33 a.m. ET, Dow E-minis were up 13 points, or

0.03%, S&P 500 E-minis were up 9.25 points, or 0.15%.

Nasdaq 100 E-minis were up 37 points, or 0.17%.

U.S. equities rallied sharply in May, with the S&P 500 index

and the tech-heavy Nasdaq marking their best

monthly gains since November 2023, helped by upbeat earnings

reports and a softening of President Donald Trump's harsh trade

stance.

The S&P 500 remains a little over 2% below all-time highs

touched in February, while the Nasdaq is about 3% below its

record peaks reached in December.

Investors are awaiting U.S. consumer prices data on

Wednesday for clues on the Federal Reserve's rate trajectory.

While traders largely expect the Fed to keep interest rates

unchanged next week, focus will be on any signs of pick-up in

inflation as Trump's tariffs risk raising price pressures.

Traders see at least two 25-basis point cuts by year-end,

with a 63% chance of the first cut in September, according to

the CME FedWatch tool.

Most megacap and growth stocks inched higher in premarket

trading. Tesla shares advanced 2.2%.

Recursion Pharmaceuticals ( RXRX ) rose about 1% after the

biotech company said it will lay off around 20% of its workforce

and focus on developing drugs for rare diseases and cancers to

reduce cash burn during a prolonged industry downturn.

Insmed ( INSM ) shares jumped 27.6% after the drugmaker said

its blood pressure drug met the main goal in a mid-stage trial.

(Reporting by Kanchana Chakravarty and Sukriti Gupta in

Bengaluru; Editing by Devika Syamnath)