* Futures up: Dow 0.56%, S&P 500 0.41%, Nasdaq 0.25%

* U.S. equity funds record first weekly outflow in three

weeks

* Space stocks, fund holding SpaceX shares rise ahead of

debut

* Adobe drops after exit of CFO Dan Durn

(Updates to before markets open)

By Johann M Cherian and Twesha Dikshit

June 12 (Reuters) - U.S. main stock indexes were set to open

higher on Friday, buoyed by expectations for an imminent Middle

East peace deal, while investors geared up for the market debut

of Elon Musk's SpaceX, which is estimated to be Wall Street's

biggest public listing in history.

U.S. President Donald Trump's comments on Thursday, which

suggested that a deal to end the Middle East conflict and reopen

the crucial Strait of Hormuz could be signed as early as this

weekend, lifted sentiment globally, even as Tehran said that a

final decision was pending.

SpaceX is expected to start trading on the Nasdaq for the

first time later in the day and is likely to be immediately

ranked as the seventh biggest publicly listed U.S. company, with

a potential valuation of $1.75 trillion.

Only about 3% to 4% of SpaceX's shares are expected

to be available for trading and Reuters reported that they were

oversubscribed nearly four times.

"A dominant company with a $1.77 trillion valuation doesn't

just quietly enter the market. It's going to cannibalize

capital," said Joel Shulman, CEO of ERShares, which manages an

ETF with SpaceX exposure.

Shares of other space stocks have soared in the lead-up to

the debut, and were also up in premarket trading.

Rocket Lab ( RKLB ) added 2.7%, Astrotech ( ASTC ) gained

1.8%, while funds holding shares of SpaceX such as Fundrise

Innovation Fund rose 8.7%.

However, more broadly, U.S. equity funds saw their first

weekly outflow in three, and earlier this week the technology

index confirmed a correction. Analysts believe some of

the weakness in U.S. stocks and bitcoin's 16% fall last

week could be due to traders trimming holdings ahead of SpaceX's

debut.

"In the absence of fresh capital coming in, it's a

mathematical certainty that it's going to have an impact on

other companies," Shulman said.

At 8:28 a.m. ET, Dow E-minis were up 287 points, or

0.56%, and S&P 500 E-minis were up 30.25 points, or

0.41%. Nasdaq 100 E-minis were up 72.5 points, or 0.25%.

The three main U.S. stock indexes are set for a muted end to

the week, much of which was marked by uncertainty surrounding

the Iran conflict and concerns that a rally in AI stocks has

gone too far.

SpaceX, which also includes Starlink and xAI, has already

defied some Wall Street conventions. Index providers such as

Nasdaq and FTSE Russell have tweaked their entry requirements

for its inclusion, while the company also set its stock price at

$135, even before the roadshow began, reflecting Musk's sway

over the IPO.

Some analysts have, however, voiced caution over the

fundamentals of the company, which posted more than $4 billion

in annual losses last year.

Data earlier this week showed inflation pressures were

mounting, driven by elevated energy costs stemming from the

Mideast conflict.

Oil prices slid below $90 a barrel following Trump's

remarks, and traders pushed their expectations for an interest

rate hike by the Federal Reserve to December from October

earlier this week, the CME Group's FedWatch tool showed.

Adobe slid 7.7% after the exit of CFO Dan Durn.