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Eli Lilly ( LLY ) up as Alzheimer's drug gets US FDA panel backing

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Crypto stocks fall as bitcoin hits one-week low

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Futures off: Dow 0.44%, S&P 0.33%, Nasdaq 0.33%

(Updated at 7:06 a.m. ET/1106 GMT)

By Lisa Pauline Mattackal and Johann M Cherian

June 11 (Reuters) - U.S. stock index futures edged lower

on Tuesday, set for a muted session as investors looked ahead to

crucial inflation data and a policy announcement from the

Federal Reserve this week.

The S&P 500 and the Nasdaq posted record

closing highs on Monday in a choppy session, boosted by shares

of Nvidia ( NVDA ) after its 10-for-one stock split.

Nvidia ( NVDA ) dipped 0.3% in premarket trading, while shares of

Apple ( AAPL ) lost 0.4% after investors were left unimpressed

by the long-awaited AI strategy presented at its developer

conference on Monday.

Markets are readying for Wednesday's release of the Consumer

Price Index report for May, along with the conclusion of the

Fed's two-day policy meeting. The central bank is not expected

to change rates, but will release its updated economic

projections and "dot plot".

The CPI numbers and the Fed's projections will be closely

scrutinized as recent reports have given conflicting signals on

the economy's underlying health.

Markets are pricing in a 54.4% chance that the Fed's first

rate cut will happen in September, according to the CME's

FedWatch tool.

"Lower commodity prices, coupled with potential adjustments

in rental index calculations, could lead to more favorable

inflation data in the coming months. This improvement would be a

positive development for the markets and should influence the

Federal Reserve's rate decisions," Jeremy Siegel, senior

economist at WisdomTree, said in a note.

"Nevertheless, at this week's meetings, I expect the dot

plot to show between 1 and 2 cuts, with a few FOMC members

choosing no cuts," Siegel said.

Producer Price Index data for May, import and export prices,

as well as the first release of the University of Michigan's

Consumer Sentiment Survey are also due later in the week.

On the day, a National Federation of Independent Business

survey showed small-business confidence and hiring plans

increased to their highest levels of the year in May, but the

upcoming U.S. presidential election drove the Uncertainty Index

to a nearly four-year high.

At

7:06

a.m. ET, Dow e-minis

were down 171 points, or 0.44%

, S&P 500 e-minis

were down 17.75 points, or 0.33%

, and Nasdaq 100 e-minis

were down 64 points, or 0.33%

.

Cryptocurrency-linked stocks slipped as bitcoin slid

4%, with bitcoin miners Riot Platforms ( RIOT ) and Marathon

Digital ( MARA ) and crypto exchange Coinbase all

falling over 3%

Eli Lilly ( LLY ) rose 2.6% after its Alzheimer's drug

donanemab received unanimous backing from a U.S. FDA panel.

Rocket Labs USA gained 0.4% after the company

signed terms to get nearly $24 million in funding under the U.S.

CHIPS Act, in order to expand the production of semiconductors

that power spacecraft.

Sage Therapeutics ( SAGE ) jumped 5.6% after its

experimental drug met the main goal of a mid-stage study in

patients with Huntington's disease.

Cleveland-Cliffs ( CLF ) dropped 3.0% after brokerage

J.P.Morgan downgraded the steel stock to "neutral" from

"overweight".