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Futures: Dow up 0.1%, S&P 500 down 0.03%, Nasdaq down

0.04%

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Boeing ( BA ) rises on Uzbekistan deal, potential China order

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Kenvue ( KVUE ) shares bounce, Trump's claims face pushback

(Updates before markets open)

By Niket Nishant and Purvi Agarwal

Sept 23 (Reuters) -

Wall Street looked set for a subdued open on Tuesday as the

recent tech-fueled rally took a breather, while investors

awaited Federal Reserve Chair Jerome Powell's remarks on the

economy amid conflicting signals from the central bank's

policymakers.

Powell's comments could be crucial to shaping interest

rate expectations at a time when the Fed's rate cut last week

has lifted equities and investors are hoping for further

reductions to sustain the rally.

Some officials argue for measured cuts going forward to keep

inflation in check. But the newly appointed Fed Governor Stephen

Miran said on Monday that the central bank risks harming the

labor market if it holds back, highlighting the tightrope the

Fed faces in balancing inflation against labor market pressures.

"The market is pricing two more cuts this year. That

could potentially be at risk if there is a little bit of a

hawkish tilt this week, especially from Powell," said Charlie

Ripley, senior investment strategist for Allianz Investment

Management.

At 8.21 a.m. ET, Dow e-minis were up 43 points,

or 0.09%, U.S. S&P 500 E-minis were down 2 points, or

0.03% and Nasdaq 100 E-minis were down 3 points, or

0.01%.

A September reading of S&P Global's flash manufacturing PMI

is due after markets open. Comments from Fed Governor Michelle

Bowman and Atlanta Fed President Raphael Bostic will also be

parsed.

Part of Wall Street's resilience in September, a

historically weak month for equities, can be traced to strength

in technology stocks and renewed optimism around artificial

intelligence-linked trading.

"The companies that are doing the best in the S&P 500 have

an AI-related tilt. It doesn't appear to be ending anytime

soon," Ripley said.

Some analysts have, however, raised concerns of stretched

stock valuations. Nvidia ( NVDA ) slipped nearly 1% in premarket

trading on Tuesday after hitting an intraday record high in the

previous session.

Others argued that markets could sustain their current

multiples if the upcoming earnings season passes without any red

flags.

"An accommodative Fed and an economy that accelerates

into 2026 should allow the market to maintain its current

multiple, leaving earnings growth to drive continued U.S. equity

gains," Goldman Sachs analysts wrote in a note.

During the past 40 years, the S&P 500 has generated a

15% median 12-month return when the Fed resumed cutting rates

against a backdrop of continued economic growth.

However, uncertainty around the Trump administration's

policy continues to pose risks. Kenvue ( KVUE ), the maker of

popular pain medication Tylenol, rose 4.6% premarket but is yet

to fully recover from a 7.5% plunge on Monday when the U.S.

president linked autism to childhood vaccine use and the taking

of Tylenol by women when pregnant.

Boeing ( BA ) gained 2.3% before the bell after securing an

order from Uzbekistan Airways worth over $8 billion, while talks

for a Chinese order were ongoing.

Lam Research ( LRCX ) fell 1.7% after KeyBanc downgraded the

chipmaking tools supplier's rating to "sector weight" from

"overweight".

Investors will also be watching for potential

disruptions from H-1B visa regulations, particularly in U.S.

technology companies.