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Powell due to speak at 10 a.m. ET

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TSMC rises on strong Q2 revenue growth

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Goodyear Tire up after report Yokohama's plans to buy unit

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Futures up: Dow 0.05%, S&P 500 0.25%, Nasdaq 0.40%

(Updated at 8:40 a.m.ET/1240 GTM)

By Lisa Pauline Mattackal and Ankika Biswas

July 10 (Reuters) -

Wall Street looked set to open higher on Wednesday as

strength in shares of its biggest companies fuels a record

rally, with Federal Reserve Chair Jerome Powell's remarks and

crucial inflation data expected to offer more direction this

week.

AI-chip favorite Nvidia ( NVDA ) jumped 2.1% in premarket

trading after hitting a nearly three-week high in the previous

session.

Tesla, too, gained 0.3% after HSBC hiked its price

target on the EV maker's stock, which clocked its longest

winning streak of 10 sessions this year on Tuesday.

The rest of the so-called "Magnificent Seven" stocks,

including Apple ( AAPL ), Alphabet and Microsoft ( MSFT )

, rose between 0.3% and 0.5%, as U.S. Treasury yields

slipped.

A handful of large-cap stocks has been the main force behind

Wall Street's banner rally this year, raising questions about

when other sections of the market could catch up and leading

some market watchers to call for greater diversification.

Other chip stocks including Arm Holdings and

Micron Technology ( MU ) gained over 1.1% each, with the U.S.

listing of Taiwan Semiconductor Manufacturing Co, the

world's largest contract chipmaker, climbing 2.5% after its

second-quarter revenue handily beat estimates.

The benchmark S&P 500 closed at an all-time high for

the fifth straight session on Tuesday, while the tech-heavy

Nasdaq notched its sixth record closing high, after

hopes for an interest-rate cut in September received a boost

from Jerome Powell, who said the U.S. was "no longer an

overheated economy".

However, as expected, Powell refrained from committing to a

timeline for cuts in his testimony to Congress. He is slated to

appear before the House Financial Services Committee at 10 a.m.

ET for further questioning from lawmakers.

"Powell came in a little bit more dovish than we

expected... he's purposely trying to signal to markets that if

there is a good inflation print this week, that September is

back on the table as a possibility for a rate cut," said Chris

Zaccarelli, chief investment officer for Independent Advisor

Alliance.

Bets on a 25-basis-point rate cut by September ticked up to

74% on Wednesday, up from around 70% yesterday and 45% a month

ago, according to CME's FedWatch. Comments from Fed officials

Austan Goolsbee, Michelle Bowman and Lisa Cook are also expected

through the day.

Attention will now shift to U.S. inflation data this week,

with the Consumer Price Index due on Thursday and the Producer

Price Index report on Friday.

The second-quarter earnings season, which kicks off this

week with major banks due to report on Friday, will be a key

test for whether high-flying megacaps can justify expensive

valuations and continue their strong runs.

At 8:40 a.m. ET, Dow e-minis were up 20 points, or

0.05%, S&P 500 e-minis were up 14.25 points, or 0.25%,

and Nasdaq 100 e-minis were up 83 points, or 0.40%.

Goodyear Tire & Rubber Company ( GT ) gained 1.6% after a

report that Japan's Yokohama Rubber was in talks to buy its

off-road tire business for at least $1 billion.

Gene-sequencing equipment maker Illumina ( ILMN ) jumped

3.6% on plans to acquire privately held Fluent BioSciences.