Wall St set for tepid open as tech recovery loses steam
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FedEx leaps after upbeat profit forecast
Rivian up on Volkswagen joint venture
Southwest Airlines falls after results
Futures: Dow down 0.26%, S&P 500 off 0.10%, Nasdaq up 0.01%
Updated at 08:29 a.m. ET/1229 GMT
By Ankika Biswas and Lisa Pauline Mattackal
June 26 (Reuters) - Wall Street's main indexes looked set for a muted open on Wednesday as megacaps dipped and a momentum in chip stocks fizzled out, with investors awaiting a crucial inflation report this week.
AI chip leader NvidiaNVDA.O slipped 0.7%, back in losses after aselloff that wiped out $430 billion in market value and weighed on the broader technology sector.
Other chip stocks including BroadcomAVGO.O, Qualcomm QCOM.O and Arm Holdings ARM.O also pared strong early gains.Micron Technology MU.O rose2.3% ahead of its quarterly results due after the closing bell.
"The market is trying to figure out in real time whether it needs to focus on the biggest three stocks - Nvidia, Apple and Microsoft - or is it time for the other 497 stocks to take the baton," said Art Hogan, chief market strategist at B Riley Wealth.
"That's been the debate in markets over the course of the last week or so, and that debate continues today. But I don't think that question gets answered until we get into the second-quarter earnings season."
Deliverygiant FedEx FDX.N jumped 14.8% after forecasting fiscal 2025 profit above estimates.
Appliances manufacturer Whirlpool WHR.N surged about 18% after Reuters reported German engineering group Robert Bosch is weighing a bid for the U.S. appliances manufacturer.
The tech-heavy Nasdaq .IXIC, the S&P 500 information technology index .SPLRCT and the PhiladelphiaSE Semiconductor index .SOX all notched gains of more than 1% on Tuesday, marking a rebound for those sectors that were instrumental in Wall Street's rise to fresh record highs.
Several economic data releases are on tap this week, leading up to Friday's release of the much-anticipated personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge.
With the Fed projecting only one interest rate cut in December, all eyes will be on whether the data shows an expected moderation in price pressures.
Market participants see a near 60% chance of a 25-basis point rate cut in September, and about two cuts by the year-end, LSEG's interest rate probabilities app showed.
At 8:29 a.m. ET, Dow e-minis 1YMcv1 were down 101 points, or 0.26% , S&P 500 e-minis EScv1 were down 5.75 points, or 0.1% , and Nasdaq 100 e-minis NQcv1 were up 2 points, or 0.01% .
Rivian RIVN.O soared 40.1% as German automaker Volkswagen VOWG_p.DE said it will invest up to $5 billion in the U.S. electric-vehicle maker.
Shares of Southwest Airlines LUV.N dropped 3.7% after the company cut itsforecast for second-quarter unit revenue, citing uneven travel demand.
Albemarle ALB.N rose 2.7% as the world's largest lithium producer plans to hold more auctions for the metal used in EV batteries.
Shares of major U.S. banks including JPMorgan Chase JPM.N, Citigroup C.N, and Bank of America BAC.N slipped between 0.4% and 0.6% ahead of the Fed's release of results from its annual banking sector stress test.
Nvidia slides from record high but remains up 140% this year https://reut.rs/4eFvYwe
Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Saumyadeb Chakrabarty
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