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Futures up: Dow 0.16%, S&P 500 0.26%, Nasdaq 0.42%

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Bitcoin stabilizes following massive losses

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Warner Bros rises on reports of offer from Netflix

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OECD lifts US economic growth forecasts

(Updates to before market open)

By Johann M Cherian and Pranav Kashyap

Dec 2 (Reuters) - U.S. stocks were set to open slightly

higher on Tuesday, steadying after Wall Street's first pullback

in more than a week, on growing bets of rate cuts ahead of fresh

inflation data later this week.

Investor attention is now focused on Friday's release of the

Personal Consumption Expenditures (PCE) Index data from the U.S.

Bureau of Economic Analysis, the Federal Reserve's preferred

gauge of inflation. The data could offer clues to the Fed's

upcoming policy decisions next week.

Geopolitical developments are also in focus, as special

envoy Steve Witkoff and U.S. President Donald Trump's son-in-law

Jared Kushner are expected to meet Russian President Vladimir

Putin for talks on a possible way to end the war in Ukraine.

U.S. stocks kicked off December on a dour note, with the

three main indexes marking their first daily losses in more than

one week on Monday, pressured by a tick-up in Treasury

yields and a selloff in crypto stocks.

Recent data pointing to a gradually cooling economy has

reinforced bets on a Federal Reserve rate cut at next week's

meeting.

The unexpected contraction in U.S. manufacturing activity in

November supports the case for the Fed to cut interest rates in

December, said Elias Haddad, global head of markets strategy at

Brown Brothers Harriman.

Policymakers are largely divided on the monetary policy path

forward, but dovish signals from a few key voting members in

recent weeks have had traders pricing in an 87.4% chance for a

25-basis-point cut next week, up from about half that

probability last month, according to the CME Group's FedWatch

Tool.

Investors are also keenly watching who may succeed Fed Chair

Jerome Powell when his term ends next year, with reports

suggesting White House economic advisor Kevin Hassett is a top

contender. The decision is expected before Christmas.

At 08:28 a.m. ET, Dow E-minis were up 77 points, or

0.16%, S&P 500 E-minis were up 18 points, or 0.26% and

Nasdaq 100 E-minis were up 105.75 points, or 0.42%.

Markets are also monitoring developments in Japan after the

domestic central bank hinted at a potential rate hike, which

sparked a selloff in global bonds including U.S. Treasuries on

Monday. A hawkish move could unwind the yen carry trade.

Meanwhile, investors digested robust online holiday spending

of $23.6 billion that surpassed analysts' forecasts, Adobe

Analytics reported.

Among top movers, Boeing ( BA ) rose 3% in premarket trading

after the planemaker said higher deliveries will be a large

driver of positive cash flow next year.

Warner Bros Discovery rose 1.3% after reports said

that it received a second round of bids, including an offer from

Netflix.

Crypto stocks including Strategy and Coinbase

were up 1.8% each, as bitcoin prices showed

signs of stabilizing after its largest dollar loss since May

2021 in the previous session.

The Organisation for Economic Cooperation and Development

raised its 2025 and 2026 growth forecasts for the U.S. economy,

pointing to AI investments, fiscal support and potential Federal

Reserve rate cuts.

Later in the day, Federal Reserve Vice Chair for Supervision

Michelle Bowman is expected to testify before the House

Financial Services Committee hearing on Oversight of Financial

Regulators.

(Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru;

Editing by Tasim Zahid and Shinjini Ganguli)