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Futures up: Dow 0.14%, S&P 500 0.07%, Nasdaq 0.04%

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Chip companies face revenue-sharing demand from US

government

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Intel ( INTC ) CEO to visit White House, report says

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Lithium stocks rise as CATL halts output at major mine

(Updates to before markets open)

By Johann M Cherian and Sanchayaita Roy

Aug 11 (Reuters) - Wall Street was on track for a

subdued start on Monday as major chip companies slipped on the

eve of a key tariff deadline after a trade policy shift that

involves sharing a portion of revenue from China sales with the

Trump administration.

Semiconductor giant Nvidia ( NVDA ) slipped 0.4% in

premarket trading, while Advanced Micro Devices ( AMD ) lost

1.2%.

A U.S. official told Reuters the companies had agreed to

give the United States government 15% of revenue from sales of

their advanced computer chips to China, days after the Commerce

Department began issuing licenses for the sale of Nvidia's ( NVDA ) H20

chips.

Enabling semiconductor sales to China was an integral issue

in the agreement Washington signed with Beijing earlier this

year and markets will be keen to know if the latest development

will impact the relationship between the world's two largest

economies. The deal expires on Tuesday.

"It's a good way for the United States government to

increase its cash and income... but a lot of people are going to

argue that this is the wrong way to go," said Robert Pavlik,

senior portfolio manager at Dakota Wealth.

"The Chinese government will probably use it as a point

to argue that they need different chips because these particular

chips might be susceptible to be reviewed by the Americans."

Markets also sought clarity on the sector tariffs U.S.

President Donald Trump has announced.

At 08:48 a.m. ET, Dow E-minis were up 64 points, or

0.14%, S&P 500 E-minis were up 4.75 points, or 0.07%,

and Nasdaq 100 E-minis were up 8.5 points, or 0.04%.

Traders took a step back after last week's rally helped the

S&P 500 and the Nasdaq log their strongest weekly

performance in more than a month.

Investors expect that the recent shake-up at the U.S.

Federal Reserve and signs of labor market weakness could nudge

the central bank into adopting a dovish monetary policy stance

later this year, fueling much of the optimism.

July's consumer inflation report is due on Tuesday and

investors currently anticipate that the Fed will lower borrowing

costs by about 60 basis points by December, according to data

compiled by LSEG.

A better-than-feared earnings season brought some relief and

BofA's monthly fund manager survey showed that owning megacap

stocks was again the most popular trade.

Apple ( AAPL ) was a standout last week following its

biggest weekly showing in five years after the iPhone maker

unveiled a series of U.S. investment pledges. The company's

shares were down 0.5% on Monday.

In earnings, Micron raised its forecast for

fourth-quarter revenue and adjusted profit, reflecting strong

demand for artificial intelligence and sending shares of the

chip company up 5.1%.

U.S.-listed shares of lithium producers rose. Albemarle

and Lithium Americas gained more than 10% each

after Chinese battery giant Contemporary Amperex Technology

(CATL) halted output at a major mine, raising hopes

that it would erode the oversupply in a market grappling with

soft demand.

Intel ( INTC ) was up 2.7% after a report said CEO Lip-Bu

Tan was expected to visit the White House. Trump had called for

his removal last week.

Trump is expected to meet Russia's President Vladimir Putin

on Friday to try and negotiate an end to the war on Ukraine.