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

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

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Futures: Dow up 0.26%, S&P 500 down 0.12%, Nasdaq down

0.37%

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Gap rises as quarterly comp sales, profit top estimates

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S&P flash manufacturing and services PMI due at 09:45 ET

(Updates with prices, analyst comment)

By Shashwat Chauhan and Pranav Kashyap

Nov 21 (Reuters) - Futures for the Nasdaq and the S&P

500 were subdued on Friday, with tech heavyweights still reeling

from the prior session's rout as worries over sky-high

valuations and uncertainty over U.S. rate cuts dented sentiment.

Nvidia ( NVDA ) dropped 2% in premarket trading after a

volatile session on Thursday when the shares swung as much as 5%

higher before closing 3.2% down.

The world's most valuable company surpassed third-quarter

revenue expectations and forecast fourth-quarter sales above

analysts' estimate late on Wednesday, while its CEO dismissed

concerns about an AI bubble.

"Relief around Nvidia's ( NVDA ) results didn't last long as

investors couldn't shake their fears that the AI boom might have

gotten ahead of itself," said Dan Coatsworth, head of markets at

AJ Bell.

All three main indexes were on track for their worst weekly

drop since March.

The Nasdaq has retreated sharply from its October

peak and is poised for a steep decline in November amid

skepticism over tech monetization prospects, circular spending

within the sector and rising debt issuance.

Global brokerages were divided over the likelihood of a

December rate cut after Thursday's release of the long-delayed

September jobs report, which marks the last employment reading

before the Federal Reserve's verdict next month.

The Bureau of Labor Statistics plans to skip its October

update and instead combine October and November nonfarm payroll

data in a single report due mid-December.

Traders currently see nearly a 37% chance of a December rate

cut, according to the CME FedWatch Tool.

At 06:51 a.m., Dow E-minis were up 120 points, or

0.26%, S&P 500 E-minis were down 8 points, or 0.12%, and

Nasdaq 100 E-minis were down 89 points, or 0.37%.

Other chip-related stocks such as Advanced Micro Devices ( AMD )

fell 1.3%, while Broadcom ( AVGO ) was down 1%.

Megacap and growth stocks also fell, with Meta Platforms ( META )

down 0.7% and Microsoft ( MSFT ) losing 0.4%.

Consumer discretionary and information technology

sectors are set for a more than 4% drop this week.

"That's a sign of a frothy market where investors sell into

strength, not chasing it," said Elias Haddad, global head of

markets strategy at Brown Brothers Harriman.

Investors will tune in to the public remarks from at least

five Fed officials throughout the day, while attention also

turns to November business activity and consumer sentiment data,

due shortly after the markets open.

Among other stocks, Gap gained 4.4% after the

apparel maker beat third-quarter comparable sales and profit

estimates.

Cryptocurrency and blockchain-related stocks dropped as

bitcoin and ether hit multi-month lows.

Exchange operator Coinbase Global ( COIN ) fell 2.4% and

Strategy, the largest corporate holder of bitcoin, slid

4.3%.