* Futures down: Dow 0.33%, S&P 500 0.42%, Nasdaq 0.57%

* US health insurers jump after Medicare Advantage

payment hike

* Broadcom ( AVGO ) rises on deal to develop Google's AI chips

(Updates before markets open)

By Purvi Agarwal and Avinash P

April 7 (Reuters) - Wall Street's main indexes were set

for a lower open on Tuesday as investors assessed comments from

the U.S. and Iran for any clues on where the conflict was

headed, before President Donald Trump's deadline for Iran to

reopen the Strait of Hormuz.

A U.S. official told Reuters that the country had struck

military targets on Iran's Kharg Island, a hub of Iran's oil

exports, though no energy infrastructure was impacted. Iran said

it would no longer hold back from hitting infrastructure of its

Gulf neighbors.

The comments come ahead of Trump's Tuesday deadline to

reopen the Strait of Hormuz, which Tehran showed no sign of

agreeing to. A senior Iranian source told Reuters that talks on

lasting peace could begin only after an end to the strikes.

"What you're seeing with the market reaction is an

acknowledgement that an end is not necessarily as close as

people had hoped," said Chris Zaccarelli, chief investment

officer for Northlight Asset Management.

"The conflict is more likely to continue with these attacks

or increasing rhetoric from both sides... that puts traders back

in an uneasy position and expecting a more worse outcome in

terms of continuation."

At 8:36 a.m. ET, Dow E-minis were down 154 points,

or 0.33%, S&P 500 E-minis were down 27.75 points, or

0.42% and Nasdaq 100 E-minis were down 137.75 points, or

0.57%.

Meanwhile, the U.S. said on Monday it would raise payments

to private insurers offering Medicare Advantage plans to older

adults in 2027 by 2.48% on average, an increase from the

near-flat change proposed earlier.

Shares of health insurers surged in premarket trading, with

UnitedHealth ( UNH ) up 7%, Humana gaining 9.9% and CVS

Health ( CVS ) adding 7.3%.

Wall Street's main indexes closed higher on Monday, marking

the fourth consecutive session of gains for the S&P 500 and the

Nasdaq, as investors digested the Middle East developments and

positioned for the upcoming quarterly earnings season.

The S&P 500 has lost about 4% since the conflict in the

Middle East erupted, just after the index was finding its

footing following a selloff, especially in private credit and

software firms, on fears of AI-driven disruption.

On Monday, UBS Global Wealth Management trimmed its S&P 500

end-2026 target to 7,500 from 7,700.

This week, markets will scrutinize some inflation readings

to see if the elevated crude prices stemming from the conflict

have impacted price pressures in the economy.

The Iran war has complicated the interest rate outlook for

the Federal Reserve as it grapples with fears of revived

inflation against the backdrop of a resilient labor market.

Comments from Fed policymakers Austan Goolsbee, Philip

Jefferson and Mary Daly will be parsed throughout the day for

clues on the future policy path.

Among other premarket movers, Broadcom ( AVGO ) shares

gained 3% after the chipmaker signed a long-term deal with

Alphabet's Google to develop its AI chips and other

components.