US STOCKS-S&P 500, Nasdaq futures edge up after Powell points to inflation risk

• Futures up: Dow 0.03%, S&P 500 0.16%, Nasdaq 0.31%
• Lithium Americas soars after report Trump administration mulling stake
• ServiceNow gains on brokerage upgrade

By Niket Nishant and Sukriti Gupta

Sept 24 (Reuters) - Futures tied to the S&P 500 and the Nasdaq nudged higher on Wednesday as investors assessed measured comments from U.S. Federal Reserve Chair Jerome Powell and looked ahead to key economic data due later in the week.

While the recent numbers point to a resilient economy, commentary from Fed officials has injected some wariness, especially about the labor market. Powell added to the cautious tone on Tuesday, noting that asset prices appeared fairly highly valued.

He did, however, stop short of aligning with either camp in the ongoing debate among Fed policymakers, with some pushing for more aggressive cuts to support the jobs market while others urge restraint to avoid reigniting inflation.

Instead, the Fed chair emphasized the delicate balancing act the central bank faces in navigating inflation risks while addressing signs of a softening labor market.

At 07:04 a.m. ET, Dow E-minis YMcv1 rose 14 points, or 0.03%, S&P 500 E-minis EScv1 were up 11 points, or 0.16%, and Nasdaq 100 E-minis NQcv1 gained 77.75 points, or 0.31%.

A widely anticipated 25-basis-point reduction from the Fed last week helped propel equities, but investors are hoping for further cuts this year to keep the rally going.

"The bias is so heavily skewed towards ultra dovishness that any shortcomings in commentary can cause a wobble in sentiment," Daniela Sabin Hathorn, senior market analyst at online trading firm Capital.com, said in a note.

There has also been concern about inflated stock valuations in some sectors. Only 17% of stocks in the benchmark S&P 500 outperformed the index in the last three months, according to data from Charles Schwab, underscoring the narrow breadth powering the momentum.

Investors will watch for the core personal consumption expenditures data, the Fed's preferred inflation gauge, which is due to be released later this week. A hotter-than-expected reading could strengthen the case for a more cautious pace of easing, while a softer print might reinforce bets on additional cuts.

Meanwhile, housing market data due on Wednesday could offer insight into consumer demand and builder sentiment, especially since elevated borrowing costs still weigh on affordability.

The sector has been pressured for much of the year and any signs of stabilization could influence broader sentiment.

Markets may also take cues from an upcoming speech by Federal Reserve Bank of San Francisco President Mary Daly for insight into how regional Fed officials are interpreting the latest data and policy signals.

In stocks, Lithium Americas' LAC.N U.S.-listed shares surged 63.5% in premarket trading after Reuters reported on Tuesday that President Donald Trump's administration was seeking an up to 10% equity stake in the company. Talks are underway to discuss a government loan exceeding $2.26 billion for the company's Thacker Pass lithium project with General Motors GM.N, which rose 2.4%.

ServiceNow NOW.N added 2% after Morgan Stanley upgraded the software company's rating to "overweight" from "equal-weight".

Amazon AMZN.O advanced 1.3% following a report that Wells Fargo had upgraded the company to "overweight" from "equal weight".

Photoshop-maker Adobe ADBE.O fell 1.2% after it was downgraded by Morgan Stanley to "equal weight" from "overweight".