U.S. stock index futures surged on Friday, putting the S&P 500 and the Nasdaq on track for record highs as investors geared up for a key inflation report amid signs of a dovish policy outlook from the Federal Reserve this year.

Personal Consumption Expenditure data - the U.S. central bank's preferred inflation gauge - for May is due to be released at 08:30 a.m. ET and will be scrutinized to assess the Fed's interest-rate path as tariffs weigh on prices.

As the ceasefire in the Middle East holds, investor focus has turned to the prospect of a dovish Fed after the Wall Street Journal reported that U.S. President Donald Trump toyed with the idea of announcing Fed Chair Jerome Powell's replacement by September or October.

"News that Donald Trump may announce his pick to be the new Fed chair with months to go has led the interest rate futures market to ramp up bets that interest rates in the U.S. will be cut sharply over the coming months and years," Kathleen Brooks, research director at XTB, said in a note.

A spate of economic data this week, including a weaker-than-expected first quarter GDP reading as well as jobless claims reaching multi-year highs, has supported the case for the central bank to cut borrowing costs this year.

Traders now price in a 20.7% chance of a rate cut in July, compared with 14.5% last week, according to CME Group's FedWatch tool.

At 06:30 a.m. ET, Dow E-minis were up 103 points, or 0.24%, S&P 500 E-minis were up 13.5 points, or 0.22%, and Nasdaq 100 E-minis were up 63.5 points, or 0.28%.

Nike's shares rose 9.2% in premarket trading after the retailer forecast a smaller-than-expected drop in first-quarter revenue.

Retailer Lululemon Athletica rose 1.4% after Nike's results, while Hoka-owner Deckers Outdoor added 2.1%.

On the flip side, gold stocks slipped in premarket trading as bullion neared a one-month low. Top miners such as Newmont and U.S.-listed Barrick Mining were down 2.3% and 2%, respectively.

The benchmark S&P 500 and the Nasdaq are on track for their best weekly performance in six weeks, while the blue-chip Dow is set for a weekly advance, if gains hold.

UBS Global Wealth Management raised its year-end target for the S&P 500 index to 6,200 from its prior forecast of 6,000, banking on softening trade uncertainty.

Adding to the upbeat sentiment, Washington reached an agreement with China on expediting rare-earth shipments to the United States, a White House official said, days ahead of the July 9 deadline for Trump's "reciprocal" tariffs.

Also on tap is the final reading of consumer sentiment for June, measured by the University of Michigan Surveys of Consumers, due at 10:00 a.m. ET.

Remarks from New York Fed President John Williams, Cleveland Fed President Beth Hammack and Fed Board Governor Lisa Cook are expected later in the day.

(Reporting by Kanchana Chakravarty and Nikhil Sharma in Bengaluru; Editing by Pooja Desai)