US STOCKS-S&P 500 eyes fresh record high riding on bull-market momentum

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)

*

Boeing down as US regulators urge inspection of 737-900ER

*

ADM tumbles on CFO probe, profit forecast cut

*

Trader bets for March rate cut drop below 50%

*

Futures up: Dow 0.23%, S&P 0.38%, Nasdaq 0.66%

(Updated at 8:15 a.m. ET/1315 GMT)

By Ankika Biswas and Johann M Cherian

Jan 22 (Reuters) -

Wall Street's main indexes were poised for more upside on Monday, building on the S&P 500's record highs last week on a boost from chip and megacap stocks, while corporate earnings and clues on rate cuts continued to top investors' radar.

The major indexes had stalled at the start of 2024 after the prior year's stellar run, as investors reassessed a quicker start to interest-rate cuts in light of mixed economic data and Federal Reserve policymakers playing down such bets.

The S&P 500 is on track for a fresh record high on surpassing the 4,842.07-point mark hit on Friday, driven by a rally in chip stocks following bullish forecasts from Taiwan's TSMC and Super Micro Computer last week, and heavyweight technology stocks.

The benchmark index also closed at its highest level of 4,839.81 points on Friday, confirming a bull market since its October 2022 closing low.

"We should expect a possibly 5% more upside before we slip into a decline of 5% or more because that's what's happened every time we recouped all that we lost in a bear market since World War Two," said Sam Stovall, chief investment strategist at CFRA Research in New York.

The Philadelphia SE Semiconductor index and the S&P 500 information technology index have jumped nearly 5% so far in January, among the top sectoral gainers, hitting all-time highs last week.

Nvidia and Advanced Micro Devices gained 1.1% and 0.7% in premarket trading, respectively, after hitting record highs on Friday, while Marvell Technology, Qualcomm and Micron Technology climbed over 1% each.

Megacaps Alphabet, Meta Platforms and Tesla also gained between 0.6% and 1.1%.

"AI will always be in the background, but as we approach the next Fed meeting, a lot of the conversation will surround the U.S. central bank and pretty much confirm that they will wait until May before cutting interest rates," Stovall added.

Traders have sharply pared bets of an at least 25-basis-point rate cut in March, currently standing at 46%, according to the CME Group's FedWatch Tool, from the over 80% chances seen by 2023-end.

Investors will parse the personal consumption expenditure (PCE) index - the Fed's preferred inflation gauge, S&P Global PMI readings and an advance fourth-quarter GDP print this week to assess the central bank's next policy decision when it meets on Jan. 31.

Big-ticket earnings later this week from Netflix, Tesla, Abbott Laboratories, Intel and Johnson & Johnson, among others, will also be watched for insights into the health of corporate America.

United Airlines Holdings, Brown & Brown and Zions Bancorp are set to detail earnings after market close.

So far, 84.6% of the S&P 500 companies that have reported results have surpassed earnings expectations, LSEG data showed on Friday, compared with the 93.1% beat seen in the previous week.

At 8:15 a.m. ET, Dow e-minis were up 86 points, or 0.23%, S&P 500 e-minis were up 18.5 points, or 0.38%, and Nasdaq 100 e-minis were up 114.75 points, or 0.66%.

Boeing lost 1% after the U.S. Federal Aviation Administration recommended airlines operating the company's 737-900ER jets inspect door plugs to ensure they are properly secured.

Renewable energy firm SolarEdge gained 2.7% on plans to lay off about 16% of its global workforce.

Archer-Daniels-Midland

slumped 12% after placing its CFO Vikram Luthar on administrative leave for an investigation and cutting its full-year profit forecast.

(Reporting by Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Maju Samuel)