Wall Street aims at record highs as Trump rally rolls on

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U.S. stock index futures edged up on Friday, indicating that investors were still eager to buy into the post-election rally that has propelled a host of Wall Street indexes to record highs.

The "Trump rally" has been running for the past month as investors bet President-elect Donald Trump's policies will boost economic growth and inflation.

The three main U.S. indexes closed at record levels for the second day in a row on Thursday, while the small cap Russell 2000 and the Dow Transport .DJT hit all-time highs.

Adding to the upbeat mood in the past weeks has been a spate of robust economic data, including on monthly hiring numbers, GDP growth and inflation, which have underscored the economy's strength.

However, one spot of worry is valuations, with the S&P 500 is currently trading at about 17.5 times forward twelve-month earnings, above the 10-year median of nearly 15 times, according to Thomson Reuters StarMine.

Data on tap for Friday is a preliminary reading of the consumer sentiment index for December, which is expected to hit 94.5 after rising to a 6-month high the previous month. The report is due at 10:00 a.m. ET (1500 GMT).

The stock market rally's resilience will be put to test after the Federal Reserve's policy meeting next week, where traders see a 94 percent chance of the central bank raising interest rates.

Among stocks, those of Restoration Hardware (RH.N) plunged 18.5 percent to $31.76 in thin premarket trading after the furniture retailer lowered its fourth-quarter profit forecast, citing slow sales in the holiday period.

Wynn Resorts (WYNN.O) rose 4.7 percent to $95 after Macau, the world's biggest gambling hub, clarified it had not tightened daily cash withdrawal limits for Chinese gamblers.

Biogen (BIIB.O) rose 3.3 percent to $299 after a study showed higher doses of the company's Alzheimer's drug appeared to reduce the risk of brain swelling.

Futures snapshot at 7:04 a.m.

ET:

Dow e-minis 1YMc1 were up 26 points, or 0.13 percent, with 8,213 contracts changing hands.

S&P 500 e-minis ESc1 were up 1 point, or 0.04 percent, with 75,283 contracts traded.

Nasdaq 100 e-minis NQc1 were up 5.75 points, or 0.12 percent, on volume of 8,599 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)