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Futures down: Dow 0.24%, S&P 500 0.2%, Nasdaq 0.18%

May 28 (Reuters) - U.S. stock index futures slipped on

Wednesday after a sharp rally in the previous session, when

easing tariff tensions boosted sentiment, as investors focused

on AI bellwether Nvidia's ( NVDA ) upcoming earnings and developments on

the trade front.

Shares of the chipmaker fell 0.2% in premarket

trading ahead of its results, due to be released after markets

close. Nvidia ( NVDA ) is expected to report a 66.2% surge in

first-quarter revenue, according to data compiled by LSEG.

Traders in the options markets are bracing for industry-wide

volatility with defensive options contracts drawing heavy

attention for the VanEck Semiconductor ETF, the largest

semiconductor ETF.

At 05:14 a.m. ET, Dow E-minis were down 101 points,

or 0.24%, S&P 500 E-minis were down 12 points, or 0.2%

and Nasdaq 100 E-minis were down 38.25 points, or 0.18%.

Most megacap and growth stocks traded in a flat-to-lower

band after Tuesday's surge, with Amazon.com ( AMZN ) and Meta

Platforms ( META ) down 0.4% each.

All three main Wall Street indexes soared in the last

session, after U.S. President Donald Trump backed down from his

50% tariff threat against the European Union.

The implementation of the tariffs is now delayed until July

9 to allow for negotiations between the White House and the

27-nation bloc.

U.S. equities are set for robust monthly gains, with both

the S&P 500 and the Nasdaq on pace for their best

monthly showing since November 2023, as easing concerns around

global trade, upbeat earnings and tame inflation data boosted

risk appetite.

The S&P 500 is now about 4% off its record closing high

reached on February 19, having plunged as much as 18.9% below

that level in the wake of Trump's erratic tariff announcements

that have whipsawed markets for much of his second term.

Looking ahead, minutes from the U.S. Federal Reserve's last

policy meeting - where the central bank held borrowing costs

steady - are slated for release at 2 p.m. ET.

Personal Consumption Expenditure data - the Fed's favored

inflation indicator - for April, as well as a second estimate of

first-quarter GDP, are scheduled to be released later this week.

New York Fed President John Williams said central banks must

"respond relatively strongly" when inflation begins to deviate

from their target, given the high uncertainty around the

economic impact of U.S. tariffs and trade policy.

Yields on long-dated U.S. government bonds were slightly

higher after scaling multi-month highs last week. Those on the

10-year note were up 3.7 basis points to 4.47%.

Global bond markets have been in the spotlight lately over

concerns about fiscal sustainability in major economies

including the United States and Japan.

Cybersecurity firm Okta ( OKTA ) flagged risks related to

the uncertain economic environment but stuck to its full-year

outlook. Its shares dropped 12.3%.

Box Inc ( BOX ) climbed 11.5% after the content cloud firm

raised its annual profit and revenue forecasts.