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Futures: Dow down 0.55%, S&P down 0.64%, Nasdaq down 0.68%

May 29 (Reuters) - U.S. stock index futures slipped on

Wednesday, as megacap stocks were pressured by rising Treasury

yields on concerns around the timing of the Federal Reserve's

interest rate cuts.

Megacaps such as Apple ( AAPL ), Meta and Nvidia ( NVDA )

dipped between 0.3% and 1.1% in trading before the bell

as the yield on Treasury notes edged higher, with that on the

five-year note hovering near four-week highs,

following a weak debt auction.

Bond yields reflect interest rate expectations. Higher rates

mean costlier financing for companies and consumers, which can

squeeze on their profits.

The CBOE Volatility Index, a Wall Street fear gauge,

also jumped to more than a three-week high of 14.11 points.

The tech-heavy Nasdaq on Tuesday closed above the

17,000 mark for the first time, driven by gains in Nvidia ( NVDA ) and

fellow chip stocks, while the benchmark S&P 500 index

ended flat with market participants doubting the possibility of

an imminent start to Fed's monetary policy easing cycle.

Traders had entered the year expecting a rate reduction at

least by March, but with sticky inflation and hawkish comments

from central bankers, the majority now appear confident of at

least a 25 basis points cut only by November or December, as per

the CME FedWatch Tool.

On the data front, focus will be on the central bank's Beige

Book, due at 2:00 p.m. ET, that would throw light on the state

of the U.S. economy, while April's Personal Consumption

Expenditure data, expected later in the week, could offer clues

on the Fed's rate cut trajectory.

Markets will also closely monitor comments from this year's

voting policymakers, including New York President John Williams

and Raphael Bostic through the day.

At 05:49 a.m., Dow E-minis were down 216 points, or

0.55%, while S&P 500 E-minis were down 31.75 points, or 0.64%.

Nasdaq 100 E-minis were down 129.25 points, or 0.68%

Marathon Oil ( MRO ) advanced 6.1% after a report said

ConocoPhillips ( COP ) is in advanced talks to buy the

Houston-based company in an all-stock deal for a little over its

$15 billion market value.

On the quarterly earnings front, American Airlines ( AAL )

cut its second-quarter profit forecast on weaker pricing power,

sending its shares down 7.8%. Fellow carriers such as Southwest ( LUV )

and Delta were also down over 1.7% each.

Quarterly results from Abercrombie & Fitch ( ANF ) and

DICK'S Sporting Goods are also due before the bell,

while those from HP Inc ( HPQ ), Agilent Technologies ( A ) and

Salesforce ( CRM ) are expected after close.

Of the 480 companies in the S&P 500 that have reported

earnings as of Friday, 77.9% have surpassed analyst estimates,

compared with a long-term average of 66.7%, according to LSEG

data.

Robinhood Markets ( HOOD ) added 3.2% after the trading app

maker launched its first-ever share buyback plan.

(Reporting by Johann M Cherian in Bengaluru; Editing by

Shinjini Ganguli)