Nasdaq eyes lower open as Nvidia, chips drag; inflation data in focus
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Fed's preferred inflation PCE data due on Friday
Under Armour falls after agreeing on lawsuit payout
ResMed slumps on Lilly's sleep apnea trial for weight-loss drug
Futures: Dow up 0.20%, S&P 500 flat, Nasdaq down 0.27%
Updated at 8:34 a.m. ET/1234 GMT
By Ankika Biswas and Lisa Pauline Mattackal
June 24 (Reuters) - The Nasdaq was set to open lower on Monday after Nvidia and other chip stocks remained under selling pressure, with investors on tenterhooks as a key inflation print this week could further shape bets over the timing and quantum of rate cuts.
AI chip leader Nvidia NVDA.O dropped 2.3% premarket following a near 7% slide over the past two sessions after briefly becoming the world's most valuable company last week.
"Nvidia has run incredibly fast and hard since the (stock) split. I don't think that the price rise was merited by fundamentals, so the price falling doesn't really mean anything either," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Some other semiconductor stocks including Arm Holdings ARM.O, Qualcomm QCOM.O, U.S.-listed shares of Taiwan Semiconductor Manufacturing TSM.N and Applied Materials AMAT.O were down between 1% and 2%.
The biggest event on investors' radar for the week is Friday's personal consumption expenditures (PCE) price index report- the Federal Reserve's preferred measure of inflation, expected to show a moderation in price pressures.
"The PCE could drive the market higher if it's even a little bit lower than anticipated ... The Fed has every reason to try to cut, but they don't really want to talk about it because they need to be tough on inflation" Forrest added.
Market participants are still expecting about two rate cuts this year, pricing in an over 60% chance of a 25-basis-point cutin September, asper LSEG's FedWatch.
The data comes againstthe backdrop of investors weighing the moderation in recent inflation data against the Fed's latest projection of one rate cut likely in December.
Investors also awaited remarks from Fed voting committee member and San Francisco President Mary Daly during the day, in light of the narrative of higher-for-longer interest rates maintained by several Fed policymakers.
The S&P 500 posted its third straight weekly gain and the blue-chip Dow .DJI its strongest weekly performance in six in the previous week, which saw simultaneous expiration of stock and index derivative contracts, quarterly S&P 500 rebalancing and mixed economic data.
The other events lined up for the week include durable goods, weekly jobless claims and final first-quarter GDP figures, along with quarterly earnings from the likes of FedEx FDX.N, Micron Technology MU.O and Walgreens Boots Alliance WBA.O.
Further, PresidentJoe Biden will debate rival Donald Trump in Atlanta on Thursday, with both neck-and-neck in national opinion polls, as a considerable slice of the electorate remains undecided over four months before the Nov. 5 vote.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were up 81 points, or 0.2%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were down 53.25 points, or 0.27%.
Under Armour UAA.N dropped 1.6% after the sports apparel maker agreed to pay $434 million to settle a 2017 class action lawsuit over sales disclosures.
Respiratory device maker ResMed RMD.N slumped 9.6% after Eli Lilly LLY.N said its popular weight-loss drug Zepbound helped resolve moderate-to-severe obstructive sleep apnea in up to 52% of patients in two late-stage trials.
Affirm Holdings AFRM.O rose 3.4% after a report thatGoldman Sachs assumed coverage of the buy now, pay later firm with a "buy" rating.
Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Maju Samuel
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