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Updates to before markets open

By Johann M Cherian and Sukriti Gupta

Feb 26 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday, after logging several days of declines, as investors awaited Nvidia's results to gauge the direction of AI demand and focused on a crucial tax-cut proposal's progress through Congress.

At 08:29 a.m. ET, Dow E-minis 1YMcv1 were up 120 points, or 0.27%, S&P 500 E-minis EScv1 were up 32.25 points, or 0.54% and Nasdaq 100 E-minis NQcv1 were up 172.25 points, or 0.81%.

Investors have been on edge since last week as a series of data releases, including Tuesday's weak consumer sentiment print, suggested the world's largest economy might be stalling, even as sticky inflation keeps the Federal Reserve cautious about lowering interest rates further.

Nvidia's NVDA.O quarterly results and forecasts, expected after markets close, are likely to set the tone for artificial intelligence stocks that have dominated Wall Street. The launch of low-cost AI models from China's DeepSeek had rattled the industry in January and raised questions around Big Tech's heavy investments into the technology.

The benchmark S&P 500 .SPX and the Nasdaq .IXIC logged their biggest four-day declines since September on Tuesday, mainly due to weakness in tech stocks, as an analyst report also hinted at overcapacity in AI infrastructure.

Nvidia shares gained 2.9% in premarket trading, while peers Broadcom AVGO.O and Advanced Micro Devices AMD.O added 2.8% and 1.3%, respectively.

"The demand for their chips remains very, very high but unfortunately, investor expectations might be even higher," said Sam Stovall, chief investment strategist at CFRA Research.

Megacaps such as Amazon.com AMZN.O and Alphabet GOOGL.O rose over 1% each, while Tesla TSLA.O gained 1.7%, a day after the electric-vehicle maker's market value fell below $1 trillion.

A Reuters poll showed strategists still expect the S&P 500 to finish 2025 about 9% higher than current levels, although market volatility will persist.

On the fiscal front, President Donald Trump's $4.5 trillion tax-cut and border security agenda will be sent to the U.S. Senate after passing the Republican-controlled House of Representatives.

"Keeping the tax cuts is what... many on Wall Street want, because should the tax rates revert, then that would end up taking more money out of the system," Stovall said.

However, given broader economic uncertainty, futures tracking the domestically-focused Russell 2000 index RTYcv1 inched up 0.5%, while yields on Treasury bonds recouped some of Tuesday's declines.

Traders expect the Fed to deliver its first interest rate cut in July, according to data compiled by LSEG. Remarks from policymakers Thomas Barkin and Raphael Bostic, due later in the day, are likely to reiterate the central bank's cautious stance.

In the latest on global trade, Trump ordered a probe into potential new tariffs on copper imports, sending prices of the red metal higher. Phoenix-based copper miner Freeport-McMoran FCX.N jumped 4.7%.

Lowe's LOW.N added 3.5% after the retailer reported a surprise rise in fourth-quarter same-store sales.

Intuit INTU.O shares rose 8.2% after the TurboTax maker forecast third-quarter revenue above Street estimates.

General Motors GM.N rose 3.3% as the automaker said it would increase its quarterly dividend by 25% and undertake a new $6 billion share buyback program.

(Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru; Editing by Devika Syamnath)

((johann.mcherian@thomsonreuters.com;))