Wall Street's main indexes were set for a muted open on Tuesday, as bets on a September interest rate cut firmed ahead of the release of minutes from the Federal Reserve's latest meet and Chair Jerome Powell's speech at Jackson Hole later this week.

The S&P 500 and the Nasdaq extended gains to an eighth straight session on Monday, their longest winning streak so far this year, after a recent set of data raised optimism about the economic health, boosting expectations of a rate cut when the Fed meets in September.

Investors have been worried about a recession after a recent report pointed to a rise in unemployment in the world's largest economy, triggering a selloff in stock markets globally earlier in the month.

At 08:22 a.m. ET, Dow E-minis were down 31 points, or 0.08%, S&P 500 E-minis were up 2.75 points, or 0.05% and Nasdaq 100 E-minis were up 8.25 points, or 0.04%.

Traders currently see a 75.5% chance of the Fed cutting interest rates by 25 basis points (bps) in September, compared with a near-even split between a 50 and 25 bps cut seen a week ago, according to the CME FedWatch Tool.

"The market has become more positive over the course of the last week or so, largely driven by the fact that data supports a soft landing scenario," said Art Hogan, chief market strategist at B Riley Wealth in Boston.

"We're just getting back to a place where we're more comfortable with the pace of both economic growth and the decrease in inflation such that we may well welcome a rate cut in September."

Traders are on watch for any hints from Powell of a rate cut at the upcoming Fed meeting in September when he delivers his speech at the annual economic symposium in Jackson Hole on Friday.

Atlanta Fed chief Raphael Bostic and Fed Vice Chair for Supervision Michael Barr will speak later on Tuesday. Minutes from the Fed's last policy meeting are due on Wednesday.

As per a slim majority of economists polled by Reuters, the U.S. central bank will cut interest rates by 25 bps at each of the remaining three meetings of 2024, one more reduction than predicted last month.

Among individual premarket movers, Palo Alto Networks gained 1.4% after the company forecast fiscal 2025 revenue and profit above estimates.

Cryptocurrency and blockchain-related stocks such as those of MicroStrategy and Coinbase Global added 3.6% and 2.6%, respectively, as bitcoin prices rose.

Eli Lilly added 2.3% after the drugmaker's weight-loss drug cut the risk of developing type 2 diabetes by 94% in pre-diabetic adults who were overweight or obese after three years of weekly injections.

Tesla rose 1.6% after the automaker was set to get a reduced tariff on its China-built cars exported to the European Union.

Boeing slipped 1.2% after the airline maker stopped test flights of its 777-9 models as it awaits certification after a component between engine and airplane structure failed to perform during a maintenance check.

 - Reuters