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Futures up: Dow 0.02%, S&P 500 0.15%, Nasdaq 0.28%

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Capri Holdings ( CPRI ) falls on wider-than-expected quarterly loss

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Nvidia ( NVDA ) results due after the bell

(Updates before markets open)

By Shashwat Chauhan and Kanchana Chakravarty

May 28 (Reuters) - Wall Street was set for a subdued

open on Wednesday after a sharp rally in the previous session,

when cooling trade tensions boosted sentiment, as investors

awaited AI leader Nvidia's ( NVDA ) results and minutes from the U.S.

central bank's last meeting.

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

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

Shares of the chipmaker rose 0.7% in premarket trading ahead of

its earnings, due to be released after markets close.

"There's kind of wait and see for Nvidia ( NVDA ) earnings tonight,

which have become one of the big macro market movers both

because of the leverage to the AI trade and the AI theme and

also because of the linkages to global trade," said Ross

Mayfield, investment strategist at Baird.

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 08:17 a.m. ET, Dow E-minis were up 8 points, or

0.02%, S&P 500 E-minis added 8.75 points, or 0.15%, and

Nasdaq 100 E-minis rose 59.5 points, or 0.28%.

Most megacap and growth stocks pared gains after Tuesday's

surge, with Nvidia ( NVDA ) up 0.7% and TSLA gaining 0.9%.

All three main Wall Street indexes soared in the last

session, after U.S. President Donald Trump backed down over the

weekend from his threat of 50% tariffs on the European Union.

The implementation of the tariffs is now delayed to July 9

to allow for negotiations between the White House and the EU.

U.S. equities are on track for robust monthly gains, with

the S&P 500 as well as the Nasdaq set 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, falling 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.

Minutes from the U.S. Federal Reserve's last policy meeting,

when the central bank held borrowing costs steady, are slated

for release at 2 p.m. ET.

In earnings, Michael Kors-owner Capri Holdings fell

4.6% after reporting a wider-than-expected quarterly loss.

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

benchmark 10-year note were up marginally at 4.44%.

Global bond markets have been in the spotlight lately over

concerns about fiscal sustainability in major economies

including the United States and Japan.

Department-store chain Macy's rose 3.7% after it

reported a first-quarter results beat.

Cybersecurity firm Okta ( OKTA ) flagged risks related to

the uncertain economic environment but stuck to its full-year

outlook. Its shares dropped more than 12%.