FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 14, 2025. REUTERS/Brendan McDermid/File Photo

By Johann M Cherian and Sanchayaita Roy

(Reuters) -The blue-chip Dow was on track to open at a record high on Friday, underpinned by expectations of an interest rate cut in September and gains in UnitedHealth's shares after Berkshire Hathaway raised its stake in the health insurer.

UnitedHealth Group jumped 10% in premarket trading after Warren Buffett's company revealed a new investment in the health insurer, while a securities filing showed Michael Burry's Scion Asset Management included bullish positions in the company.

Rising costs in the broader healthcare sector and an about 46% slump in heavyweight UnitedHealth's shares this year have left the Dow lagging its Wall Street peers on the road to record highs. The price-weighted index last scaled an all-time high on December 4.

This week, however, the healthcare sector is the top performer on the benchmark S&P 500 and is on track for its best weekly performance in three.

Other insurers also gained, with Elevance up 4.2%, Centene rising 4% and Molina adding 3.5% before the bell on Friday.

Meanwhile, data showed retail sales rose by an expected 0.5% in July, but a spike in import prices raised concerns that U.S. tariffs could fuel inflation in the months ahead.

Wall Street's main U.S. stock indexes are on track for their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September.

The central bank last lowered borrowing costs in December and said U.S. tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month.

"The totality of the data keeps the Fed alive for a September rate cut," said Art Hogan, chief market strategist at B Riley Wealth.

"If you take the components of consumer inflation and producer inflation and extrapolate that out to the Personal Consumption Expenditures Price Index, it's going to be well within the confines of what the Fed would like to see to feel comfortable cutting rates in September."

At 08:43 a.m. ET, Dow E-minis were up 269 points, or 0.60%, S&P 500 E-minis were up 7.5 points, or 0.12%, and Nasdaq 100 E-minis were down 25 points, or 0.10%.

On the trade front, U.S. President Donald Trump said he would unveil tariffs on steel and semiconductors next week.

Applied Materials tumbled 12.8% after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks.

Shares of other chip equipment makers such as KLA and Lam Research lost 5.1% and 4.4%, respectively.

Intel rose 3.1% on the heels of a 20% gain this week after a report said the Trump administration was in talks with the struggling chipmaker for the U.S. government to potentially take a stake in the company.

On the commodities front, crude prices slipped to around $65 a barrel with attention on a meeting in Alaska between Trump and his Russian counterpart, Vladimir Putin, that markets hope could pave the way for a resolution to the Ukraine conflict. The meeting will take place at 1900 GMT.

(Reporting by Johann M Cherian and Sanchayaita Roy in Bengaluru; Editing by Devika Syamnath)