(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Russell 2000 futures jump

*

Deckers, Baker Hughes ( BKR ) climb after results

*

Dexcom ( DXCM ) slips after cutting revenue forecast

*

PCE inflation data due at 8:30 a.m. ET

*

Futures up: Dow 0.62%, S&P 500 0.75%, Nasdaq 0.98%

(Updated at 7:09 a.m. ET/1109 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

July 26 (Reuters) -

Wall Street futures rose on Friday, with Nasdaq futures up

nearly 1% as megacap tech and chip stocks rebounded after the

week's walloping, while investors awaited U.S. inflation figures

to justify bets on early rate cuts by the Federal Reserve.

All the so-called Magnificent Seven stocks - Apple ( AAPL )

, Nvidia ( NVDA ), Alphabet, Microsoft ( MSFT )

, Meta Platforms ( META ), Amazon.com ( AMZN ) and Tesla

- were up between 0.7% and 2.2% in premarket trading.

Chip stocks also rebounded, with Intel ( INTC ),

Broadcom ( AVGO ), Qualcomm ( QCOM ), Micron Technology ( MU )

and Arm Holdings up between 1% and 2%.

At 7:09 a.m. ET, Dow e-minis were up 248 points, or

0.62%, S&P 500 e-minis were up 41 points, or 0.75%, and

Nasdaq 100 e-minis were up 186 points, or 0.98%.

Investors have dumped tech stocks over the past few weeks,

with disappointing earnings from Alphabet and Tesla sparking a

sharp sell-off in megacap and artificial-intelligence-linked

stocks on Wednesday. The S&P 500 and the Nasdaq were on track

for a second straight weekly decline, if losses hold.

Concerns about Wall Street's growing dependence on a set of

high-momentum stocks, whose valuations now appear inflated, have

made underperforming sectors like mid- and small-cap stocks seem

more alluring as the prospect of early rate cuts rises.

Futures tracking the small-cap Russell 2000

jumped 1.4% on Friday, with the index set for its third straight

week of gains if trends hold.

"A brutal rotation from U.S. information technology

leaders to U.S. small caps has encouraged the narrative of a

healthy rotation and a Goldilocks scenario for equities," Yves

Bonzon, chief investment officer at Julius Bar said in a note.

However, Bonzon said he remained wary, noting that "the

odds of a correction are higher than those of a sustainable

rotation".

The much-awaited Personal Consumption Expenditures Price

Index data - the Fed's preferred inflation gauge - will be

watched to see if inflation cools further. Recent signs of

easing inflation and a weakening labor market have boosted bets

on an early start to the Fed's interest-rate cuts.

Traders have priced in around two rate cuts by December,

according to LSEG data, while bets of a 25-basis-point cut by

the Fed's September meeting stood at 88%, according to CME's

FedWatch.

The Commerce Department's report, due at 8:30 a.m. ET, is

expected to show the PCE print rose 0.1% on a monthly basis in

June after last month's flat reading. Excluding volatile items

such as food and energy, the core figure is expected to increase

0.1%, after a similar rise in May.

Earlier this week, data showing faster-than-expected

second-quarter economic growth and subsiding inflation pressures

kept hopes of a September rate cut intact, boosting the

blue-chip Dow and the small-cap Russell 2000.

On the earnings front, Deckers Outdoor ( DECK ) jumped 11%

after raising its annual profit forecast following a

first-quarter results beat, while Oilfield services firm Baker

Hughes ( BKR ) climbed 2% after beating estimates for

second-quarter profit.

Medical device maker Dexcom ( DXCM ) slumped 35.3% after

cutting its annual revenue forecast, while drugmaker Bristol

Myers Squibb ( BMY ) rose 4.7% after better-than-expected

second-quarter results.

Investors also kept an eye out for developments in the U.S.

presidential race, with new opinion polls showing Vice President

Kamala Harris narrowing the gap with Republican rival Donald

Trump.