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

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

*

Tesla up after Morgan Stanley adds stock to 'top pick'

list

*

McDonald's posts drop in quarterly global sales

*

Abbott slides after verdict on premature-infant-formula

trial

*

Futures up: Dow 0.40%, S&P 500 0.37%, Nasdaq 0.59%

(Updated at 07:13 a.m. ET/1113 GMT)

By Ankika Biswas and Johann M Cherian

July 29 (Reuters) - Futures tracking the main U.S. stock

indexes rose on Monday after a recent sell-off, as investors

braced for a busy week that will bring a Federal Reserve

interest-rate decision, along with Big Tech earnings and crucial

labor numbers.

Nvidia ( NVDA ), Alphabet, Amazon.com and

Meta Platforms ( META ) were up between 0.7% and 1.1% before the

bell after the recent rout in megacap tech shares saw Wall

Street's main stock indexes spiral downward last week.

Tesla was lifted 1.4% after brokerage Morgan

Stanley added the electric-vehicle-maker's stock to its U.S.

autos list as a "top pick".

At 07:13 a.m. ET, Dow e-minis were up 163 points,

or 0.40%, S&P 500 e-minis were up 20.5 points, or 0.37%,

and Nasdaq 100 e-minis were up 112.59 points, or 0.59%.

The three major U.S. stock indexes jumped more than 1% on

Friday after hopes of an early start to monetary policy easing

were boosted by an encouraging U.S. inflation report, close on

the heels of recent data signaling a loosening jobs market.

However, the S&P 500 and the Nasdaq failed to recoup losses

and closed the week lower after a disappointing start to tech

earnings prompted the indexes to log their steepest one-day

slide since 2022 on Wednesday.

The next round of earnings from Wall Street's tech giants

including Microsoft, Meta, Apple and Amazon.com starts on

Tuesday.

Investors will be on the watch for a justification for the

inflated valuations of these high-momentum stocks, as well as

signs that the AI-led equity rally has growth to spare.

"With results still due from some big firms this week,

market volatility is likely to continue," analysts at UBS said.

After Wall Street's record-breaking run since the start of

this year, concerns about the dominance of technology behemoths

have prompted investors to pull out of these top-tier stocks and

pour into lagging sections such as mid and small caps, which are

expected to benefit from a low-interest-rate environment.

"The recent pullback (from megacaps) creates a re-entry

opportunity, in our view, especially for those companies with

strong earnings growth visibility," UBS analysts said.

The Russell 2000 index marked its third-straight week

of gains on Friday and was not far from reclaiming levels last

seen more than two-and-a-half years ago.

Investors now have their hopes pinned on the Fed signaling a

rate cut, in all likelihood in September, in its policy decision

on Wednesday. Any hawkish commentary from central bank officials

would likely put equities under renewed selling pressure.

Bets of a 25-basis-point cut by September have held around

89%, although they are up sharply from nearly 60% last month,

according to CME's FedWatch Tool.

A raft of employment reports through the week such as the

Job Openings and Labor Turnover Survey, ADP Employment and

Non-farm Payrolls and weekly jobless claims, will be scrutinized

for concrete clues on a somewhat easing labor market.

Among other movers, McDonald's rose 0.8% in choppy

trading after it reported a surprise drop in quarterly global

comparable sales.

Crypto stocks such as Coinbase Global ( COIN ), Riot

Platforms ( RIOT ) and Marathon Digital ( MARA ) gained between

3.7% and 4.1% after bitcoin prices jumped to a seven-week

high.

Abbott Laboratories ( ABT ) lost 6.7% after a jury ordered

the healthcare company to pay $495 million in damages in a

premature-infant-formula trial.