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* FedEx leaps after upbeat profit forecast

* Rivian up on Volkswagen joint venture

* Southwest Airlines falls after results

* Futures: Dow down 0.17%, S&P 500 flat, Nasdaq up 0.13%

June 26 (Reuters) -

Futures for the Nasdaq advanced on Wednesday as Nvidia and other chip stocks continued to regain momentum, while those tracking the Dow edged lower ahead of a key inflation reading this week.

AI chip favorite Nvidia climbed 2.1% premarket, continuing its gain after a three-session selloff, though still below the record high level touched last week.

Other chip stocks Broadcom, Taiwan Semiconductor Manufacturing and Arm Holdings were up between 0.1% and 0.9%, while Micron Technology rose 2.8% ahead of its quarterly results, due after the closing bell.

"If investors remain so convinced of the chip designer's future that they drive it up to new highs ... it will restore the company's status as the stock market's bullish bellwether," said David Morrison, senior market analyst at Trade Nation.

"If not, then further weakness could easily sour sentiment in general, even if there is perceived value outside the tech leaders."

Meanwhile, delivery giant FedEx jumped 13.4% after forecasting fiscal 2025 profit above estimates on Tuesday.

The tech-heavy Nasdaq, the S&P 500 information technology index and the Philadelphia SE Semiconductor index all notched gains of more than 1% on Tuesday.

Tuesday's gains marked a rebound for those sectors which have been the primary reasons for Wall Street's rise to fresh record highs, as enthusiasm around artificial intelligence-linked companies offset concerns about higher-for-longer U.S. interest rates.

Several economic data releases are awaited this week, with Friday's release of the personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge - the most closely watched.

With the Fed projecting only one interest rate cut likely in December, all eyes will be on whether the data shows an expected moderation in price pressures.

Market participants see a near 60% chance of a 25-basis point rate cut in September, and about two cuts by the year end, LSEG's FedWatch data showed.

Megacaps Apple and Amazon.com gained 0.2% and 0.9% on Wednesday.

The AI stocks' rally is expected to leave an outsized imprint on the annual reconstitution of the Russell indexes on Friday, typically one of the busiest trading days of the year.

At 7:11 a.m. ET, Dow e-minis were down 66 points, or 0.17%, S&P 500 e-minis were down 0.75 points, or 0.01%, and Nasdaq 100 e-minis were up 26.5 points, or 0.13%.

Rivian soared 37% as German automaker Volkswagen said it will invest up to $5 billion in the U.S. electric-vehicle maker as part of a new, equally controlled joint venture.

Shares of Southwest Airlines dropped 3.2% after the company cut forecasts for second-quarter unit revenue, citing uneven travel demand.

Albemarle rose 2.7% as the world's largest lithium producer plans to hold more auctions for the metal used in EV batteries.

Shares of major U.S. banks including JPMorgan Chase, Citigroup, and Bank of America slipped between 0.3% and 0.6% ahead of the Federal Reserve's release of results from its annual banking sector stress test.

(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)