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FedEx ( FDX ) falls on quarterly profit drop, forecast trim

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Nike ( NKE ) jumps after appointing new CEO

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Futures slip: Dow 0.02%, S&P 500 0.31%, Nasdaq 0.50%

(Updated at 07:12 a.m. ET/1112 GMT)

By Johann M Cherian and Purvi Agarwal

Sept 20 (Reuters) -

U.S. stock index futures edged lower on Friday, pausing

after the previous session's rally set Wall Street's main

indexes on track for weekly gains following the Federal

Reserve's pivotal stance on monetary policy earlier in the week.

The S&P 500 notched its eighth session of gains out

of nine on Thursday and closed at an all-time high, breaching

its earlier milestone from mid-July. The blue-chip Dow

also clinched a record high and settled above the psychological

level of 42,000 points.

The indexes along with the tech-heavy Nasdaq are on

track for weekly gains of over 1%. The S&P 500 is set to buck

the historical trend of September being weaker for U.S. equities

on average.

At 7:12 a.m. ET, Dow E-minis were down 7

points, or 0.02%, S&P 500 E-minis were down 18 points,

or 0.31% and Nasdaq 100 E-minis were down 101 points, or

0.50%.

Risk appetite got a boost earlier in the week after the Fed

kicked off its easing cycle with an oversized 50-basis-point cut

and assured that more were on the way. The central bank also

projected a period of steady economic growth and low

unemployment and inflation.

"We appear to be in the benign scenario where the Fed is

cutting rates outside of a recession. Historically, that has

been a very good combination for equities," analysts at Deutsche

Bank said in a note.

Traders now see a 59.7% probability of a 25 bps cut in

November, as per the CME Group's FedWatch tool. Expectations are

that rates will drop by 72 bps by year-end, as per LSEG data.

Investor focus will remain on remarks from Philadelphia Fed

President Patrick Harker later in the day in the absence of

major economic data.

Some market volatility is expected in the day, as options

and futures linked to stock indexes and individual stocks are

set to expire simultaneously on the third Friday of the last

month of the quarter, in an event called "triple witching".

Among top movers in premarket trading, FedEx ( FDX ) plunged

13.1% after the postal service company, often seen as a

bellwether to the U.S. economy, reported a steep drop in

quarterly profit and lowered its full-year revenue forecast.

Rival United Parcel Service ( UPS ) slipped 2.6%.

Nike ( NKE ) jumped 6% after the sportswear giant said that

former senior executive Elliott Hill will rejoin the company to

succeed John Donahoe as president and CEO.

Trump Media & Technology ( DJT ) shares, majority owned by

former U.S. President Donald Trump, fell 4.2% after the expiry

of its lock-up period that lifts restrictions on insiders to

sell the company's stock.

A rebalancing of the main indexes is also expected. Dell

dipped nearly 1%, Palantir Technologies ( PLTR ) fell

2.2% with the stocks expected to join the S&P 500 before the

market opens on Sept. 23.

Globally, investors mulled whether the world's dominant

economy is set to boom or face a recession. Central banks in the

UK and Japan took a more cautious stance on interest rates, days

after the Fed's verdict.

Historically, equities have performed well in a rate cutting

cycle as lower borrowing costs could ease pressures on corporate

profits. However, the outlook appears bleak with the S&P 500's

valuations high above its longterm average.