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Nvidia AI developer conference kicks off with new chips in

focus

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Alphabet jumps on report of talks to build Gemini AI into

iPhone

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Nasdaq says issues impacting connectivity resolved

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Futures up: Dow 0.19%, S&P 0.77%, Nasdaq 1.22%

(Updated at 8:30 a.m. ET/1230 GMT)

By Bansari Mayur Kamdar and Shashwat Chauhan

March 18 (Reuters) -

Wall Street was on track to open higher on Monday, led by a

recovery in the tech-laden Nasdaq, ahead of the U.S. Federal

Reserve's meeting this week, where the central bank is expected

to keep borrowing costs steady and provide cues on its monetary

policy trajectory.

Stronger-than-expected inflation figures last week have

prompted investors to rethink when and by how much policymakers

will lower rates this year, with traders pulling back bets of a

June rate cut to around 59% from 71% last Monday, according to

the CME FedWatch Tool.

Nevertheless, Wall Street, led by optimism around artificial

intelligence (AI), hit fresh all-time highs in March, before

pulling back some gains last week.

A hawkish tilt by the Fed in its policy meeting that

concludes on Wednesday could further pressure the high-flying

indexes.

"(Investors) will be looking for more clarity if the broad

market consensus opinion of a June rate reduction is still real,

they are going to be interpreting the dot plot moving forward,

seeing if there's any broad modifications," said Jamie Battmer,

chief investment officer at Creative Planning in Kansas.

Goldman Sachs on Monday said they now expect three

interest rate cuts in 2024 after inflation came in a bit firmer

than expected.

Exchange operator Nasdaq said it has resolved an

issue related to connectivity and stock orders after more than

two hours.

AI-darling

Nvidia ( NVDA )

kicked off its annual developer conference, with

investors focused on new chip announcements from Chief Executive

Jensen Huang in an afternoon keynote address. The chipmaker rose

2.8% in premarket trading.

Peers Micron Technology ( MU ) and Advanced Micro Devices ( AMD )

added 4.0% and 1.7%, respectively.

At 08:30 a.m. ET, Dow e-minis were up 73 points, or

0.19%, S&P 500 e-minis were up 39.75 points, or 0.77%,

and Nasdaq 100 e-minis were up 219.5 points, or 1.22%.

Most megacap growth and technology shares advanced in

trading before the bell.

Alphabet gained 4.9% after a media report that

Apple ( AAPL ) is in talks to build Google's Gemini AI engine

into the iPhone.

Tesla rose 4.2% after the electric carmaker said it

would increase the price of its Model Y EVs in some European

countries on March 22, by approximately 2,000 euros ($2,177) or

its equivalent in local currencies.

U.S.-listed shares of Xpeng climbed 6.7% on the

company's plans to launch a cheaper EV brand amid fierce price

competition.

Boeing ( BA ) shed 1% after a media report that a federal

grand jury in Seattle issued a subpoena to the planemaker over

the Jan. 5 midair blowout of a Boeing ( BA ) door plug on an Alaska

Airlines flight.

Super Micro Computer ( SMCI ), which joins the S&P 500 on

Monday, climbed 3.2%.