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

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

*

Fed's preferred inflation PCE data due on Friday

*

Nvidia ( NVDA ) on track for third straight declining session

*

Under Armour ( UAA ) falls after agreeing on lawsuit payout

*

Indexes: Dow up 0.59%, S&P up 0.14%, Nasdaq down 0.21%

(Updated at 9:54 a.m. ET/1354 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

June 24 (Reuters) -

The Nasdaq slipped on Monday, dragged down by weakness in

Nvidia ( NVDA ) and other chip stocks, while investors geared up for a

key inflation print this week that could further shape bets over

the timing and quantum of rate cuts.

Nvidia ( NVDA ) dropped 3%, taking its losses over three

sessions to nearly 13%, with market participants citing profit

taking in the AI favorite as the main reason for declines.

"There's a good chance we'll see more profit taking in

the coming days and weeks. (Nvidia ( NVDA )) has had an incredible run,

but people realise the shares need to consolidate their gains,"

said Michael O'Rourke, chief market strategist at JonesTrading.

Other semiconductor stocks including the U.S. listing of

Taiwan Semiconductor Manufacturing and Qualcomm ( QCOM )

fell over 2.5%, dragging an index of chip stocks down

1.3%.

The S&P 500 information technology sector

dropped over 1% to a near two-week low, though the other ten S&P

500 sectors were in the green.

The biggest event on investors' radar for the week is

Friday's personal consumption expenditures (PCE) price index

report- the Federal Reserve's preferred measure of inflation,

expected to show a moderation in price pressures.

"The PCE could drive the market higher if it's even a little

bit lower than anticipated ... the Fed has every reason to try

to cut, but they don't really want to talk about it because they

need to be tough on inflation" said Kim Forrest, chief

investment officer at Bokeh Capital Partners.

Market participants are still expecting about two rate cuts

this year, pricing in an over 60% chance of a 25-basis-point cut

in September, as per LSEG's FedWatch.

The data comes against the backdrop of investors

weighing the moderation in recent inflation data against the

Fed's latest projection of one rate cut likely in December.

Investors also awaited remarks from Fed voting committee

member and San Francisco President Mary Daly during the day, in

light of the narrative of higher-for-longer interest rates

maintained by several Fed policymakers.

Other events lined up for the week include durable goods,

weekly jobless claims and final first-quarter GDP figures, the

annual Russell index reconstitution, and quarterly earnings from

the likes of FedEx ( FDX ), Micron Technology ( MU ) and

Walgreens Boots Alliance ( WBA ).

Further, President Joe Biden will debate rival Donald Trump

in Atlanta on Thursday, with both neck-and-neck in national

opinion polls.

At 9:54 a.m. ET, the Dow Jones Industrial Average was

up 231.04 points, or 0.59%, at 39,381.37, the S&P 500 was

up 7.42 points, or 0.14%, at 5,472.04, and the Nasdaq Composite

was down 36.97 points, or 0.21%, at 17,652.39.

Under Armour ( UAA ) dropped 1.4% after the sports apparel

maker agreed to pay $434 million to settle a 2017 class action

lawsuit over sales disclosures.

RXO leapt 16.1% after announcing on Sunday it will

buy United Parcel Service's ( UPS ) Coyote Logistics business

unit for $1.025 billion.

Affirm Holdings ( AFRM ) rose 7.5% after a report that

Goldman Sachs assumed coverage of the buy now, pay later firm

with a "buy" rating.

Advancing issues outnumbered decliners by a 3.17-to-1 ratio

on the NYSE and by a 1.72-to-1 ratio on the Nasdaq.

The S&P index recorded 15 new 52-week highs and one new low,

while the Nasdaq recorded 21 new highs and 44 new lows.