(There will be no US equities report on Friday on account of

Good Friday. Reuters will resume coverage on Monday, April 1.)

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Semiconductor index set to end Q1 up over 17%

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Dow close to hitting 40,000 mark

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Walgreens falls after narrowing FY profit forecast

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Futures: Dow up 0.03%, S&P down 0.02%, Nasdaq down 0.02%

(Updated at 8:10 a.m. ET/ 1210 GMT)

By Shashwat Chauhan and Bansari Mayur Kamdar

March 28 (Reuters) - Wall Street's main stock indexes

were set to open flat on Thursday in thin trading ahead of

Easter break, as investors awaited more data to gauge the

Federal Reserve's policy path on the last business day of a

strong first quarter.

The three main indexes were set for strong quarterly gains,

as an AI-fueled rally and optimism around the Fed's rate cuts

helped lift Wall Street to record highs this month.

The blue-chip Dow was just 0.6% short of crossing the

40,000 level for the first time.

All three indexes ended higher in the previous session, with

the Dow jumping more than 1% to post its best daily gain this

year, while the S&P 500 clocked an all-time closing high.

"Despite the fact that inflation has remained stubbornly

high, investors are more impressed with the state of the economy

and the resilient consumer than they are worried about Fed rate

cuts being pushed farther," Chris Zaccarelli, chief investment

officer at Independent Advisor Alliance said in a note.

Heading into the long weekend, focus will also be on the

Personal Consumption Expenditures Price Index (PCE), the Fed's

preferred inflation gauge, which is due on Good Friday, when the

U.S. stock market will remain shut.

"This Friday's PCE report will be more important than usual

as it will show whether or not the previous inflation reports

this year were temporary setbacks or a beginning of a new trend

of higher-for-longer inflation."

Overnight, Fed Governor Christopher Waller said recent

disappointing inflation data affirms the case for the Fed to

hold off on cutting its short-term interest rate target, but he

did not rule out trimming rates later in the year.

Traders see a 64% chance that the Fed will begin its easing

cycle in June, as per the CME FedWatch tool.

Investors awaited the final readings of fourth-quarter GDP,

the University of Michigan's consumer sentiment survey and the

weekly jobless claims data.

At 8:10 a.m. ET, Dow e-minis were up 12 points, or

0.03%, S&P 500 e-minis were down 1 points, or 0.02%, and

Nasdaq 100 e-minis were down 3.25 points, or 0.02%.

Among individual stocks, chipmaker Nvidia ( NVDA ) dipped

0.3% before the bell, after falling more than 2% each in the

last two sessions. The AI winner is still set for more than 80%

gains this quarter.

The Philadelphia Semiconductor Index is on track to

end its second straight quarter with double-digit gains.

Take-Two Interactive Software ( TTWO ) shed 1.6% after the

video game publisher said it would buy Gearbox Entertainment,

best known for the first-person shooter game Borderlands, from

Sweden's Embracer for $460 million.

Cryptocurrency and blockchain-related companies advanced as

bitcoin recovered after a two-day slide. Exchange operator

Coinbase Global ( COIN ), software company MicroStrategy ( MSTR )

and crypto miner Riot Platforms ( RIOT ) rose between

0.9% and 2.6%.

Walgreens Boots Alliance ( WBA ) slipped 1.1% after the

pharmacy chain cut the higher end of its profit forecast for

fiscal 2024 and took a $5.8-billion impairment charge related to

its VillageMD business.