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Futures: Dow down 0.02%, S&P 500 up 0.07%, Nasdaq up 0.13%

Aug 28 (Reuters) - U.S. stock index futures were

flat-to-slightly higher on Wednesday, as investors held back

ahead of a crucial quarterly earnings report from AI-favorite

Nvidia ( NVDA ) to gauge if the market can withstand further risk-taking

in a bull rally.

Wall Street's main indexes have broadly swung between small

gains and losses since the start of the week, with the Dow

hovering near record highs and the S&P 500 within

1% of a record high, as investors await the chip giant's

results, due after markets close.

Shares of the No. 2 most valuable company in terms of market

capitalization were up 0.4% in trading before the bell. However,

data from ORATS showed options traders anticipate a nearly 10%

jump in its shares if it reports a doubling in second-quarter

revenue as expected.

Nvidia's ( NVDA ) stock is up nearly 160% year-to-date, accounting

for around a quarter of the benchmark index's 18% gain. Any

disappointment in its results could hurt megacaps and other

semiconductor stocks, which have led 2024's rally on the

prospect of artificial intelligence integration boosting

corporate profits.

Other chip stocks such as Broadcom ( AVGO ) and Advanced

Micro Devices ( AMD ) inched up, as did megacaps including Apple ( AAPL )

, Microsoft ( MSFT ) and Alphabet.

"Markets put in a subdued performance yesterday... that

should soon change from today, as we've got Nvidia's ( NVDA ) earnings...

which have become an important macro event in their own right

over recent quarters, with reactions that rival the sort of

moves taking place after surprise jobs reports or (Consumer

Price Index) releases," analysts at Deutsche Bank said.

At 05:19 a.m., Dow E-minis were down 7 points, or

0.02%, S&P 500 E-minis were up 4 points, or 0.07% and

Nasdaq 100 E-minis were up 26.25 points, or 0.13%

On the macro front, sentiment favors the likelihood of the

Federal Reserve lowering interest rates at its September

meeting. Odds of a 25-basis-point reduction stand at 63.5%,

while those of a 50-bps cut are at 36.5%, according to the CME

Group's FedWatch Tool.

Fed Chair Jerome Powell's support for imminent policy

adjustment sparked broad-based market gains in the previous

week. The Personal Consumption Expenditure report for July, due

on Friday, is expected to provide insight into the pace and

magnitude of the central bank's rate-cut trajectory.

Comments on the economic outlook from voting member and

Atlanta Fed President Raphael Bostic, due later in the day, will

be closely watched.

Investors also await earnings reports from J M Smucker ( SJM )

, Abercrombie & Fitch ( ANF ) and Bath & Body Works ( BBWI )

before markets open.

SentinelOne ( S ) raised its annual revenue forecast,

sending shares of the cybersecurity company up by 1.9%, while

Nordstrom ( JWN ) jumped 7.8% after the department-store chain

reported second-quarter profit which topped estimates.