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FedEx ( FDX ) leaps after upbeat profit forecast

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Rivian up on Volkswagen joint venture

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Southwest Airlines ( LUV ) falls after results

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Futures: Dow down 0.26%, S&P 500 off 0.10%, Nasdaq up

0.01%

(Updated at 08:29 a.m. ET/1229 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

June 26 (Reuters) -

Wall Street's main indexes looked set for a muted open on

Wednesday as megacaps dipped and a momentum in chip stocks

fizzled out, with investors awaiting a crucial inflation report

this week.

AI chip leader Nvidia ( NVDA ) slipped 0.7%, back in losses

after a selloff that wiped out $430 billion in market value and

weighed on the broader technology sector.

Other chip stocks including Broadcom ( AVGO ), Qualcomm ( QCOM )

and Arm Holdings also pared strong early gains.

Micron Technology ( MU ) rose 2.3% ahead of its quarterly

results due after the closing bell.

"The market is trying to figure out in real time whether it

needs to focus on the biggest three stocks - Nvidia ( NVDA ), Apple and

Microsoft - or is it time for the other 497 stocks to take the

baton," said Art Hogan, chief market strategist at B Riley

Wealth.

"That's been the debate in markets over the course of

the last week or so, and that debate continues today. But I

don't think that question gets answered until we get into the

second-quarter earnings season."

Delivery giant FedEx ( FDX ) jumped 14.8% after forecasting

fiscal 2025 profit above estimates.

Appliances manufacturer

Whirlpool

surged about 18% after Reuters reported German

engineering group Robert Bosch is weighing a bid for the U.S.

appliances manufacturer.

The tech-heavy Nasdaq, the S&P 500 information

technology index and the Philadelphia SE Semiconductor

index all notched gains of more than 1% on Tuesday,

marking a rebound for those sectors that were instrumental in

Wall Street's rise to fresh record highs.

Several economic data releases are on tap this week,

leading up to Friday's release of the much-anticipated personal

consumption expenditures price index - the Federal Reserve's

preferred inflation gauge.

With the Fed projecting only one interest rate cut in

December, all eyes will be on whether the data shows an expected

moderation in price pressures.

Market participants see a near 60% chance of a 25-basis

point rate cut in September, and about two cuts by the year-end,

LSEG's interest rate probabilities app showed.

At

8:29

a.m. ET, Dow e-minis

were down 101 points, or 0.26%

, S&P 500 e-minis

were down 5.75 points, or 0.1%

, and Nasdaq 100 e-minis

were up 2 points, or 0.01%

.

Rivian soared 40.1% as German automaker Volkswagen

said it will invest up to $5 billion in the U.S.

electric-vehicle maker.

Shares of Southwest Airlines ( LUV ) dropped 3.7% after the

company cut its forecast for second-quarter unit revenue, citing

uneven travel demand.

Albemarle rose 2.7% as the world's largest lithium

producer plans to hold more auctions for the metal used in EV

batteries.

Shares of major U.S. banks including JPMorgan Chase ( JPM ),

Citigroup ( C/PN ), and Bank of America ( BAC ) slipped between

0.4% and 0.6% ahead of the Fed's release of results from its

annual banking sector stress test.