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SentinelOne ( S ) gains after raising annual revenue forecast

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Nordstrom ( JWN ) climbs as quarterly profit beats estimates

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Foot Locker ( FL ) drops on bigger second-quarter loss

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Futures off: Dow 0.07%, S&P 500 0.08%, Nasdaq 0.10%

(Updated at 8:27 a.m. ET/1227 GMT)

By Johann M Cherian and Purvi Agarwal

Aug 28 (Reuters) - Wall Street's main indexes were set

for a muted open on Wednesday ahead of Nvidia's ( NVDA ) earnings report,

with focus squarely on if the recent bull market rally that was

led by the AI chip firm and other tech-related shares can be

sustained.

The three main indexes have swung between small gains and

losses this week, with the Dow hovering near record highs

and the S&P 500 within 1% of an all-time high, as

investors await Nvidia's ( NVDA ) results after the bell.

The chip designer's shares were flat in premarket trading.

Options pricing shows traders anticipate a move of around 9.8%

in Nvidia's ( NVDA ) shares on Thursday, a day after it reports earnings,

data from analytics firm ORATS showed.

Any disappointment in Nvidia's ( NVDA ) results could hurt megacaps

and other semiconductor stocks, which have led 2024's rally on

the prospect of artificial intelligence integration boosting

corporate profits.

"Investors are a little nervous about what they're going to

see and hear from Nvidia ( NVDA ) ... since expectations have been so

high, you sort of wonder how much better can it get," said Sam

Stovall, chief investment strategist at CFRA Research.

"The news itself will be driving not only Nvidia's ( NVDA ) shares,

but the technology sector and the overall market."

Other chip stocks such as Qualcomm ( QCOM ) and Advanced

Micro Devices ( AMD ) edged lower, as did megacaps including

Meta, Microsoft ( MSFT ) and Alphabet.

At 08:27 a.m. ET, Dow E-minis were down 31 points,

or 0.07%, S&P 500 E-minis were down 4.25 points, or

0.08%, Nasdaq 100 E-minis were down 19.25 points, or

0.10%.

Optimism continued to prevail that the U.S. Federal Reserve

will lower interest rates at its September meeting after Fed

Chair Jerome Powell's support for imminent policy adjustment

last week, that had sparked broad-based market gains.

Odds of a 25-basis point reduction currently stand at 65.5%,

while those of a 50-bps cut are at 34.5%, according to the CME

Group's FedWatch Tool.

The Personal Consumption Expenditure report for July, due on

Friday, is expected to provide further insight into the pace and

magnitude of the central bank's rate-cut trajectory.

Comments on the economic outlook from voting member and

Atlanta Fed President Raphael Bostic, due later in the day, will

also be closely watched.

SentinelOne ( S ) raised its annual revenue forecast,

sending the cybersecurity company's shares up 1.3%.

Nordstrom ( JWN ) jumped 1.7% after the department-store

chain reported second-quarter profit which topped estimates,

while Foot Locker ( FL ) sank 7.9% after the athletic apparel

retailer posted a bigger quarterly loss.

Bath & Body Works ( BBWI ) fell 4.9% after the retailer cut

its annual sales forecast.