*

Futures down: Dow 0.29%, S&P 500 0.51%, Nasdaq 0.29%

*

Initial claims for state unemployment benefits drop

*

Intel ( INTC ) rises on report chipmaker seeking investment from

Apple ( AAPL )

*

Oracle looks to raise $18 billion in debt; shares down

(Updates before markets open)

By Niket Nishant and Sukriti Gupta

Sept 25 (Reuters) - Wall Street's main indexes were set

to open lower on Thursday, as fresh economic data and remarks

from a Federal Reserve official tempered optimism around further

rate cuts.

The moves reflect a broader sense of caution ahead of

Friday's release of the Personal Consumption Expenditures index,

the Federal Reserve's preferred inflation measure, which could

shape expectations for the path of interest rates.

With Fed Chair Jerome Powell noting earlier this week that

asset prices appeared fairly highly valued, the stakes are

higher for both economic data and corporate earnings to justify

current market valuations.

Investors are focused on whether the optimism that has

propelled indexes to record highs since the tariff-driven

selloff on April 2 is backed by solid fundamentals.

At 08:48 a.m. ET, Dow E-minis were down 133 points,

or 0.29%, S&P 500 E-minis were down 34.3 points, or

0.51%, and Nasdaq 100 E-minis were down 173 points, or

0.29%.

"The real question will be: now that the jobless data is

less bad than originally anticipated, does that mean the Fed

might not cut (rates) in October and December, but possibly just

wait until December," said Sam Stovall, chief investment

strategist at CFRA Research.

The Labor Department data showed initial claims for state

unemployment benefits dropped 14,000 to a seasonally adjusted

218,000 for the week ended September 20. Economists polled by

Reuters had forecast 235,000 claims for the latest week.

Chicago Fed President Austan Goolsbee said he was uneasy

with cutting rates too quickly, flagging risks about inflation

flaring up.

Investors will also monitor commentary from Fed Vice Chair

for Supervision Michelle Bowman, who is scheduled to speak in

Washington.

A potential government shutdown in Washington, where budget

negotiations have so far failed to yield an agreement, only

aggravated the worries.

Analysts warn that a prolonged shutdown could disrupt data

releases critical for assessing economic trends, injecting fresh

volatility into an already uncertain backdrop.

Among the stocks in focus is Intel ( INTC ), which gained 1%

in premarket trading, a day after Bloomberg News reported that

the chipmaker has approached Apple ( AAPL ) about securing an

investment.

Brokerage firm Seaport Research Partners upgraded Intel's ( INTC )

stock to "neutral" from "sell".

Carmax ( KMX ) shares slid 15%, after the used-car retailer

reported lower second-quarter profit due to waning demand.

U.S.-listed shares of Lithium Americas climbed about

12.6%, after nearly doubling in the previous session, following

a Reuters report that President Donald Trump's administration is

seeking an up to 10% stake in the miner.

Oracle slipped 1.7% after a regulatory filing

showed on Wednesday that the company was aiming to raise $18

billion in debt.