Updates with prices, analyst comment

By Johann M Cherian and Twesha Dikshit

June 12 (Reuters) - U.S. stock index futures rose on Friday, buoyed by expectations for an imminent end to the Middle East conflict, 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.

"I think there will be initial hyper-enthusiasm as investors believe strongly in the future of SpaceX, but also anticipate it being added to some indices. Depending on how big the initial reaction is, the aftermath may be a sharp drop," said Melissa Brown, managing director of investment decision research at SimCorp.

"Overall, given the nature of the company, volatility is likely to be high."

Besides, only about 3%-4% of SpaceX's shares SPCX.O are expected to be available for trading.

The conglomerate, 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, 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.

"Its technology and AI-related businesses are still operating at a loss. We need to see how these segments evolve before we can assess their long-term profitability," said Ismael Garcia Puente, deputy director of investment strategy at MAPFRE AM.

Shares of other space stocks have soared in the lead-up to the debut and were also up in premarket trading.

Rocket Lab RKLB.O added 5%, Intuitive Machines LUNR.O rose 0.6% and Planet Labs PL.N added 1.7%, while funds holding shares of SpaceX such as Fundrise Innovation Fund VCX.N rose 6.3%, while Destiny Tech100 DXYZ.N soared 4.8%.

At 07:14 a.m. ET, Dow E-minis YMcv1 were up 299 points, or 0.59%, S&P 500 E-minis EScv1 were up 35.25 points, or 0.48%, and Nasdaq 100 E-minis NQcv1 were up 129.5 points, or 0.44%.

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.

The S&P 500 is down nearly 3% from its last record high, and earlier this week the technology index .SPRLCT confirmed a correction. Analysts believe some of the weakness in U.S. stocks and bitcoin could be due to traders trimming holdings ahead of SpaceX's debut.

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 ADBE.O slid 6.4% after the exit of CFO Dan Durn.