Wall St set to open lower on growth worries, labor data awaited
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July JOLTS report awaited at 10:00 a.m. ET
Nvidia drops after report of subpoena from US DoJ
Dollar Tree dives after cutting annual forecasts
Futures off: Dow 0.18%, S&P 500 0.42%, Nasdaq 0.75%
Updated at 08:34 a.m. ET/ 1234 GMT
By Johann M Cherian and Purvi Agarwal
Sept 4 (Reuters) -Wall Street's main indexes were set to open lower on Wednesday, as fresh worries over the health of the U.S. economy kept investors on the sidelines in the run-up to labor data.
In the previous session, the indexes had logged their biggest one-day loss since early August as investors dumped technology-related stocks in a dour start to September.
Since 1928, the benchmark S&P 500 has recorded losses of about 1.2% on average in the historically weak month for U.S. equities.
"You've got a market that is as nervous as it often gets in September, but we're not looking at back-to-back large down days," said Art Hogan, chief market strategist at B Riley Wealth.
The risk-off mood was exacerbated by data that showed manufacturing activity shrank, nearly a month after signs of softening labor demand sparked a global market rout.
"The manufacturing impact on the U.S. economy often gets overstated. It's more important to focus on things like the labor market and investors will lean a lot more into those data points," Hogan said.
Traders now await July's Job Openings and Labor Turnover Survey at 10 a.m. ET and non-farm payrolls report on Friday, which could offer clues on the size of the Federal Reserve's expected interest-rate cut in September.
Markets expect a 59% chance of a 25 basis points cut, according to CME Group's FedWatch Tool, while that of a 50 bps cut has increased to 41% from around 31% a day earlier.
Data on July factory orders and the Fed's survey, known as the "Beige Book", are also expected on Wednesday.
At 08:34 a.m. ET, Dow E-minis 1YMcv1 were down 72 points, or 0.18%, S&P 500 E-minis EScv1 were down 23.25 points, or 0.42% and Nasdaq 100 E-minis NQcv1 were down 143.25 points, or 0.75%.
Chip stocks fell in the previous session, with the Philadelphia SE Semiconductor index .SOX falling 7.8% to its steepest one-day drop since the COVID-19 pandemic.
Nvidia NVDA.O fell 2% in premarket trading after a report said the U.S. Department of Justice sent a subpoena to the AI chip firm as it deepens its probe into the company's antitrust practices.
A 10% slump in the previous session had wiped off a record $279 billion from Nvidia's market capitalization - the biggest ever single-day decline in market value for a U.S. company.
Other growth stocks such as Tesla TSLA.O fell 1%, while Apple AAPL.O and Microsoft MSFT.O slipped 0.8% each.
Among others, Advanced Micro Devices AMD.O rose 1.7% after the chipmaker appointed former Nvidia NVDA.O executive Keith Strier as senior vice president of global AI markets.
Zscaler ZS.O forecast fiscal 2025 revenue and profit below estimates, sending the cybersecurity company's shares down 17.4%.
Dollar Tree DLTR.O slumped 10.4% after the discount store operator trimmed its annual sales and profit forecasts, while - Skippy peanut butter maker Hormel Foods HRL.N slid 6.6% after it lowered its annual sales view.
Intel INTC.O slipped 2.8%. A report showed the chipmaker's contract manufacturing business suffered a setback after tests with chipmaker Broadcom AVGO.O failed.
September is the worst month for S&P 500 on average since 1928 https://tmsnrt.rs/3zea03d
Reporting by Johann M Cherian, Bansari Mayur Kamdar and Purvi Agarwal in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur
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