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

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

*

Powell due to speak at 10 a.m. ET

*

TSMC up on strong Q2 revenue growth

*

Illumina ( ILMN ) rises after acquiring Fluent BioSciences

*

Goodyear Tire up after report Yokohama's plans to buy unit

*

Futures: Dow flat, S&P 500 up 0.14%, Nasdaq up 0.27%

(Updated at 7:26 a.m. ET)

By Lisa Pauline Mattackal and Ankika Biswas

July 10 (Reuters) - S&P 500 and Nasdaq futures rose in a

record-breaking Wall Street rally on Wednesday, on continued

strength in heavily weighted stocks, with Federal Reserve Chair

Jerome Powell's remarks and crucial inflation prints set to

offer more direction this week.

AI-chip favorite Nvidia ( NVDA ) climbed 1.1% in premarket

trading, after hitting a near three-week high in the previous

session.

Other chip stocks including Arm Holdings and

Micron Technology gained around 1% each, with U.S.-listed shares

of Taiwan Semiconductor Manufacturing Co, the world's

largest contract chipmaker, climbing 2% after its

second-quarter revenue

handily beat estimates.

All the so-called "Magnificent Seven" stocks were

trading higher, with U.S. Treasury yields falling. Meta

Platforms ( META ), Apple ( AAPL ), Alphabet and

Microsoft ( MSFT ) were up around 0.4% each.

Tesla, too, edged up 0.5% after HSBC hiked its

price target on the EV maker's stock, which clocked its longest

winning streak of 10 sessions this year on Tuesday.

The group of seven stocks has been the main force behind

Wall Street's banner rally this year, while the broader market

has lagged, leading some market watchers to question the

sustainability of equity gains and call for greater

diversification.

The benchmark S&P 500 closed at an all-time high for

the fifth straight session on Tuesday, while the tech-heavy

Nasdaq notched its sixth record closing high, after

hopes for an interest-rate cut in September received a boost

from Jerome Powell, who said the U.S. was "no longer an

overheated economy".

However, as expected, Powell refrained from committing to a

timeline for rate cuts in his testimony to Congress. He is

slated to appear before the House Financial Services Committee

at 10 a.m. ET for further questioning from lawmakers.

"We believe Powell is happy with keeping markets

relatively quiet at this stage as some data starts to go in the

right direction, we did read a still modestly dovish bias in

Powell's testimony, as he kept adding emphasis on the risks of

unduly weakening activity and employment," analysts at ING said

in a note.

Bets on a 25-basis-point rate cut by September have hovered

around 70% for the past week, up from 45% a month ago, according

to CME's FedWatch. Comments from Fed officials Austan Goolsbee,

Michelle Bowman and Lisa Cook are also expected through the day.

Attention will now shift to U.S. inflation data this week,

with the Consumer Price Index due on Thursday and the Producer

Price Index report on Friday.

The second-quarter earnings season, which kicks off this

week with major banks due to report on Friday, will be a key

test for whether high-flying megacaps can justify expensive

valuations and continue their strong runs.

At 7:26 a.m. ET, Dow e-minis were down 4 points, or

0.01%, S&P 500 e-minis were up 8 points, or 0.14%, and

Nasdaq 100 e-minis were up 55.25 points, or 0.27%.

Gene-sequencing equipment maker Illumina ( ILMN ) jumped

3.7% on plans to acquire privately held Fluent BioSciences.

Goodyear Tire & Rubber Company ( GT ) gained 2% after a

report that Japan's Yokohama Rubber was in talks to buy its

off-road tire business for at least $1 billion.