GLOBAL MARKETS-Stock rally catches a breath; Powell speech in focus

By Isla Binnie and Canan Sevgili

NEW YORK/LONDON, Sept 23 (Reuters) - Wall Street opened mixed on Tuesday after riding artificial intelligence euphoria to record highs, while U.S. Treasury yields were almost unflappable and gold soared ahead of planned remarks from Federal Reserve Chair Jerome Powell.

The tech-heavy Nasdaq Composite .IXIC retrenched slightly, falling 0.31% after the tech sector pushed indexes to record highs on Monday for the third straight session.

Nvidia NVDA.O and Amazon AMZN.O weighed, slipping 2.2% and 2.3% respectively.

Blue-chip indexes were mixed. By 10:45 a.m. the Dow Jones Industrial Average .DJI rose 0.43%, while the S&P 500 .SPX fell 0.07%.

The moves in Nvidia came after the stock hit a record high on Monday on news the chipmaker would invest up to $100 billion in OpenAI, with the first data centre gear to be delivered in the second half of 2026.

"It may not be an exaggeration to write that Nvidia – the key supplier of capital goods for the AI investment cycle - is currently carrying the weight of U.S. economic growth," said George Saravelos, global head of FX research at Deutsche Bank.

MSCI's gauge of stocks in 49 countries .MIWD00000PUS pared earlier gains to be 0.09% up on the day.

Powell is due to speak at noon (1600 GMT) in his first public remarks since the U.S. central bank cut rates last week. Investors' antennas are up for any signals as to whether the Fed will cut again in October.

Markets are pricing in a 92% chance of a 25 basis points cut at the Fed's October meeting, and 8% odds of a pause.

The yield on benchmark U.S. 10-year notes US10YT=RR fell 0.6 bps to 4.139%, from 4.145% late on Monday. The 2-year note US2YT=RR yield, which typically moves in step with expectations for Fed rate decisions, rose 0.4 bps to 3.605% from 3.601% late on Monday.

Gold basked in its safe-haven status to hit a new record high, with the spot price XAU= last quoted at $3,772.89 an ounce. GOL/

Chris Weston, head of research at broker Pepperstone, said investors were hedging their exposure to stocks by buying gold.

RATE EXPECTATIONS SUPPORT EQUITIES, DOLLAR FIRM

Global equities have been supported by expectations of further Fed rate cuts after it eased policy last week.

"The markets are sanguine in this 'everything rally,' awaiting more evidence that further Fed easing will steer the economy away from any hard landings," BNY head of markets macro strategy Bob Savage said in a note.

Markets remain dovish despite mixed messaging from the Fed itself.

Before the chair's speech, Vice Chair for Supervision Michelle Bowman largely dismissed inflation risks and said rates may need to come down faster to support the labor market.

New Fed Governor Stephen Miran called for sharp rate cuts on Monday, while three colleagues urged caution on inflation.

The U.S. dollar held steady against major peers, clocking a 0.03% rise to 0.792 against the Swiss franc CHF=EBS.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 97.34.

Oil prices rose by more than $1 a barrel after a deal to resume exports from Iraq's Kurdistan stalled. This reduced some concerns about oversupply. O/R