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* Cryptocurrency stocks track higher Bitcoin prices
* Urban Outfitters surges on signaling accelerating May sales
* S&P 500 to end year 2.5% above current level - poll
* Futures up: Dow 0.26%, S&P 0.34%, Nasdaq 0.46% (Adds comment, details; updates prices)
May 26 (Reuters) - Wall Street’s main indexes were set to rise on Wednesday after remarks from the Federal Reserve helped calm inflation worries, while a recent dip in bond yields supported heavyweight tech-related stocks for a third straight session.
Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc added between 0.3% and 0.5% in premarket trading, as the yield on the benchmark 10-year Treasury note stood at more than two-week lows of 1.5638%.
Higher yields pressure valuations for tech and other growth stocks, whose future cash flows are discounted at higher rates.
“Tech has amassed multiple compressions on fears that rates would have to be raised but now that inflation has been recognized as overblown, fund managers are piling back into certain sections,” said Thomas Hayes, managing member at Great Hill Capital Llc in New York.
“People are realizing that there will be a major component to inflation that will be transitory and there will be some moderate inflation that will be persistent.”
After fears of rising inflation roiled Wall Street’s main indexes earlier this month, all eyes will be on the closely watched monthly U.S. personal consumption report, the Fed’s favorite inflation gauge, due later this week.
Fed vice chair Richard Clarida downplayed the effects of higher price pressures on Tuesday, voicing faith in the central bank’s ability to engineer a “soft landing” if prices continued to escalate beyond what was expected.
With the S&P 500 sitting just about 1% away from its record high, strategists expect the benchmark index to end the year only about 2.5% above its current level as concerns over increasing inflationary risks weigh, according to a Reuters poll.
At 8:45 a.m. ET, Dow e-minis were up 88 points, or 0.26%, S&P 500 e-minis were up 14.25 points, or 0.34%, and Nasdaq 100 e-minis were up 63.25 points, or 0.46%.
Cryptocurrency-related stocks including those in Riot Blockchain, Marathon Patent Group and Coinbase Global rose between 4.9% and 2.4% as bitcoin climbed back above $40,000 for the first time this week.
Department store operator Nordstrom Inc dropped 6.4% in thin trading after reporting a bigger-than-expected quarterly loss, hurt by price markdowns.
Apparel retailer Urban Outfitters jumped 11% after it posted better-than-expected quarterly results and signaled accelerating sales in May.
Ford Motor Co gained 2.1% after it outlined plans to boost spending on its electrification efforts by more than a third. (Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu)