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UPS rises on better-than-expected 2026 revenue forecast

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Dell reduces workforce as part of broader cost cuts;

shares up

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Trump Media & Technology surges ahead of debut after SPAC

merger

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Futures up: Dow 0.25%, S&P 0.40%, Nasdaq 0.50%

(Updated at 7:02 p.m. ET/ 1102 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 26 (Reuters) - U.S. stock index futures bounced

back on Tuesday as megacap growth stocks and chipmakers

advanced, while investors awaited more economic data in a

holiday-shortened week to assess the Federal Reserve's rate-cut

path.

Wall Street ended the previous session slightly lower, with

the S&P 500 and the blue-chip Dow easing from

their best weekly performances so far this year.

The spotlight remains on a crucial February reading of the

Personal Consumption Expenditures (PCE) price index, the Fed's

preferred inflation gauge, due on Friday, when U.S. markets will

be shut for the Good Friday holiday.

"We believe that higher inflation prints for January and

February were partly driven by temporary noise in the data, and

expect more favorable numbers over the rest of 2024 to result in

a lower inflation rate at the end of the year," said Mark

Haefele, chief investment officer at UBS Global Wealth

Management.

The index is expected to have risen 0.4% in February and

2.5% on an annual basis. Core inflation, which excludes volatile

food and energy components, is estimated to have risen 0.3% last

month, which would keep the annual pace at 2.8%, according to

economists polled by Reuters.

A hot reading for the PCE index can potentially hamper

market optimism around early rate cuts.

Wall Street rallied to fresh record highs last week when Fed

Chair Jerome Powell said the recent high inflation readings had

not changed the underlying "story" of slowly easing price

pressures. He also said the central bank was on track for three

interest-rate cuts this year.

Traders see an at least 70% chance the Fed will begin its

easing cycle in June, according to the CME FedWatch tool, up

from a nearly 59% chance seen early last week.

Fed officials said on Monday they still believed U.S.

inflation would ease, but acknowledged an increased sense of

caution around the debate.

March consumer confidence and February durable goods

readings are due later in the day.

Trading activity is expected to be light owing to the

upcoming long weekend break.

At 07:02 a.m. ET, Dow e-minis were up 101 points,

or 0.25%, S&P 500 e-minis were up 21 points, or 0.40%,

and Nasdaq 100 e-minis were up 92.25 points, or 0.50%.

Megacap growth stocks edged higher in premarket trading,

with Tesla leading the charge, up 3%.

Micron Technology ( MU ) rose 1.7% after hitting a record

high in the last session, while industry giant Nvidia ( NVDA )

gained 0.9%.

The Philadelphia Semiconductor Index dipped on Monday

but remained on track to end the quarter with double-digit gains

this week, as an artificial intelligence-led rally lifted

chipmakers.

Trump Media & Technology group surged 16.8% in

trading before the bell, ahead of its first day of trading after

completing a reverse merger with a blank check firm.

Dell Technologies ( DELL ) climbed 1.7% after the firm said

it had reduced its workforce as part of a broader initiative to

cut costs that included limiting external hiring and employee

reorganizations.

United Parcel Service ( UPS )

rose 2.5% on forecasting better-than-expected 2026

consolidated revenue.

Doughnut chain Krispy Kreme jumped 14% after

announcing an expansion of its national partnership with

McDonald's.