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Intel ( INTC ) down after Q2 revenue warning

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Uber ( UBER ) falls on weak Q2 gross bookings forecast

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Indexes down: Dow 0.02%, S&P 0.31%, Nasdaq 0.54%

(Updated at 09:38 a.m. ET/ 1338 GMT)

By Sruthi Shankar and Shristi Achar A

May 8 (Reuters) - U.S. stock indexes fell on Wednesday,

dragged by losses in Tesla and Uber ( UBER ), while a rebound in bond

yields further pressured megacap stocks as investors sought

clarity on the Federal Reserve's rate path.

Uber ( UBER ) lost 5.4% after the ride-hailing platform

forecast second-quarter gross bookings below expectations and

posted a surprise first-quarter loss.

Tesla fell 3.1% after Reuters reported that U.S.

prosecutors were examining whether the company committed

securities or wire fraud by misleading investors and consumers

about its electric vehicles' self-driving capabilities.

Among other megacap stocks, Microsoft ( MSFT ), Nvidia ( NVDA )

and Alphabet fell between 0.3% and 1.1%,

following a rise in the 10-year Treasury yield after

five days of declines.

The day's losses come after the S&P 500 closed higher

for a fourth straight session on Tuesday, its best winning run

since March, while the blue-chip Dow scored a fifth

session of gain in its longest positive run since December 2023.

Markets have mostly traded higher so far in May, as

investors took comfort from an upbeat earnings season as well as

a recent softer-than-expected labor market report, which

tempered concerns about the Fed keeping interest rates higher

for longer.

Traders are pricing in a 65% chance of the U.S. central bank

cutting interest rates by at least 25 basis points in September,

according to the CME Group's Fedwatch tool, up from about 54% a

week ago.

"The market has now priced in the Fed's move for the rest of

the year, so the reaction function will be lower moving forward

and investors will start to focus more on the economic and

earnings backdrop," said Dylan Kremer, chief investment officer

at Certuity.

"The bond yields aren't necessarily reflecting the expected

Fed activity..and that's primarily due to still resilient

growth."

Investors will closely monitor comments from Fed speakers --

Vice Chair Philip Jefferson, Boston President Susan Collins and

Governor Lisa Cook during the day -- for fresh clues on the

central bank's monetary easing plans.

With the earnings season at its tail-end and only a few

economic reports expected this week, markets are now awaiting

next week's consumer prices reading to gauge if inflation is

cooling.

Rate-sensitive real estate led sectoral declines,

down 0.8%.

At 09:38 a.m. ET, the Dow Jones Industrial Average

fell 7.11 points, or 0.02%, to 38,877.15, the S&P 500

lost 16.17 points, or 0.31%, to 5,171.53 and the Nasdaq

Composite lost 88.08 points, or 0.54%, to 16,244.48.

Intel ( INTC ) lost 2.2% after the chipmaker said the U.S.

Department of Commerce was revoking certain export licenses for

its consumer-related items to a customer in China, a move that

would impact its second-quarter revenue.

Uber ( UBER ) rival Lyft ( LYFT ) climbed 7.8% after projecting

higher-than-expected gross bookings and a core profit for the

current quarter.

Declining issues outnumbered advancers by a 3.08-to-1 ratio

on the NYSE and a 2.57-to-1 ratio on Nasdaq.

The S&P 500 posted 12 new 52-week highs and 2 new lows while

the Nasdaq recorded 22 new highs and 38 new lows.

(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru;

Editing by Shinjini Ganguli)