US STOCKS-US stock futures dip after sharp rally, focus on Nvidia earnings

• Futures down: Dow 0.24%, S&P 500 0.2%, Nasdaq 0.18%

May 28 (Reuters) - U.S. stock index futures slipped on Wednesday after a sharp rally in the previous session, when easing tariff tensions boosted sentiment, as investors focused on AI bellwether Nvidia's upcoming earnings and developments on the trade front.

Shares of the chipmaker NVDA.O fell 0.2% in premarket trading ahead of its results, due to be released after markets close. Nvidia is expected to report a 66.2% surge in first-quarter revenue, according to data compiled by LSEG.

Traders in the options markets are bracing for industry-wide volatility with defensive options contracts drawing heavy attention for the VanEck Semiconductor ETF SMH.O, the largest semiconductor ETF.

At 05:14 a.m. ET, Dow E-minis YMcv1 were down 101 points, or 0.24%, S&P 500 E-minis EScv1 were down 12 points, or 0.2% and Nasdaq 100 E-minis NQcv1 were down 38.25 points, or 0.18%.

Most megacap and growth stocks traded in a flat-to-lower band after Tuesday's surge, with Amazon.com AMZN.O and Meta Platforms META.O down 0.4% each.

All three main Wall Street indexes soared in the last session, after U.S. President Donald Trump backed down from his 50% tariff threat against the European Union.

The implementation of the tariffs is now delayed until July 9 to allow for negotiations between the White House and the 27-nation bloc.

U.S. equities are set for robust monthly gains, with both the S&P 500 .SPX and the Nasdaq .IXIC on pace for their best monthly showing since November 2023, as easing concerns around global trade, upbeat earnings and tame inflation data boosted risk appetite.

The S&P 500 is now about 4% off its record closing high reached on February 19, having plunged as much as 18.9% below that level in the wake of Trump's erratic tariff announcements that have whipsawed markets for much of his second term.

Looking ahead, minutes from the U.S. Federal Reserve's last policy meeting - where the central bank held borrowing costs steady - are slated for release at 2 p.m. ET.

Personal Consumption Expenditure data - the Fed's favored inflation indicator - for April, as well as a second estimate of first-quarter GDP, are scheduled to be released later this week.

New York Fed President John Williams said central banks must "respond relatively strongly" when inflation begins to deviate from their target, given the high uncertainty around the economic impact of U.S. tariffs and trade policy.

Yields on long-dated U.S. government bonds were slightly higher after scaling multi-month highs last week. Those on the 10-year note US10YT=RR were up 3.7 basis points to 4.47%.

Global bond markets have been in the spotlight lately over concerns about fiscal sustainability in major economies including the United States and Japan.

Cybersecurity firm Okta OKTA.O flagged risks related to the uncertain economic environment but stuck to its full-year outlook. Its shares dropped 12.3%.

Box Inc BOX.N climbed 11.5% after the content cloud firm raised its annual profit and revenue forecasts.