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Intel ( INTC ) down after disclosing $7 bln operating loss for

chip-making unit

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Futures down: Dow 0.06%, S&P 0.18%, Nasdaq 0.29%

(Updated at 7:10 a.m. ET/ 1110 GMT)

By Sruthi Shankar and Shashwat Chauhan

April 3 (Reuters) - U.S. stock index futures were

marginally lower on Wednesday as jittery investors awaited more

data and comments from Federal Reserve Chair Jerome Powell after

strong readings on the U.S. economy tempered bets on interest

rate cuts this year.

The tech-heavy Nasdaq and the blue-chip Dow

closed at two-week lows on Tuesday as Treasury yields rose to

multi-month highs on stronger-than-expected manufacturing

activity and factory orders data that raised doubts over the

prospect of three rate cuts the Fed had forecast for 2024.

"With American factories churning out more goods, it's

another piece of the picture pointing to a highly resilient US

economy in the face of high borrowing costs," said Susannah

Streeter, head of money and markets at Hargreaves Lansdown.

"It has led to fresh risk-off sentiment spreading, as

worries brew about inflation staying doggedly above target and

the Fed being potentially forced to hold off from cutting rates

by as much as previously forecast this year."

The benchmark 10-year U.S. Treasury yield edged

higher on Wednesday to 4.3632%. It had hit a 2024 peak of 4.405%

in the prior session.

March private payrolls and services sector data later in the

day could offer fresh insights on the U.S. economy.

Traders are pricing in a 62% chance the Fed will cut

interest rates by 25 basis points in June, according to

CMEGroup's FedWatch tool, slightly down from about 64% a week

ago.

Market participants have also pared back their expectations

on the number of rate cuts to about two this year from three a

few weeks ago, according to LSEG's rate probability app.

Cleveland Fed Bank President Loretta Mester and San

Francisco Fed Bank President Mary Daly said on Tuesday they

think it would be "reasonable" to cut interest rates thrice this

year, even as stronger recent economic data has sown investor

doubts about that outcome.

A slew of U.S. central bank officials including Powell are

slated to speak during the day. Powell's speech is due at 1210

ET (1610 GMT).

Focus is now on the Labor Department's jobs report on Friday

that is expected to show U.S. nonfarm payrolls increased by

200,000 jobs in March, following 275,000 job additions in

February.

At 7:10 a.m. ET, Dow e-minis were down 24 points,

or 0.06%, S&P 500 e-minis were down 9.5 points, or

0.18%, and Nasdaq 100 e-minis were down 53.25 points, or

0.29%.

Among individual stocks, Intel ( INTC ) slipped 4.6% in

premarket trading after the chipmaker disclosed $7 billion in

operating losses for its foundry business in 2023, steeper than

the $5.2 billion reported the year before.

Tesla dipped 1.0%, adding to its near 5% drop on

Tuesday after the automaker missed first-quarter delivery

estimates.

Paramount Global ( PARAA ) gained 3.1% after a report said

the media giant has been discussing entering into talks with

David Ellison, the founder of the Skydance media company, for a

potential deal.

(Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru;

Editing by Saumyadeb Chakrabarty and Shinjini Ganguli)