* Q4 GDP growth revised down to 2.5 percent
* Lowe’s slumps as profit misses estimate
* Celgene falls after FDA rejects filing for MS drug
* Futures up: Dow 49 pts, S&P 4.25 pts, Nasdaq 24 pt (Adds comment, details, updates prices)
By Sruthi Shankar
Feb 28 (Reuters) - Wall Street was set to open higher on Wednesday after data showed U.S. economic growth slowed slightly more than initially thought in the fourth quarter, weakening the case for faster rises in interest rates.
The U.S. Commerce Department said gross domestic product expanded at a 2.5 percent annual rate, instead of the previously reported 2.6 percent pace.
Strong economic data earlier in the month had raised fear among traders that U.S. interest rates would rise faster than previously expected, sparking Wall Street’s biggest selloff in two years.
Even with the gains the S&P 500 and the Dow are still on course for their first monthly fall since last March.
“As February comes to a close, large gyrations experienced during the month could very well spill into next month as topic of rates dominates,” Peter Cardillo, chief market economist at First Standard Financial in New York, wrote in a note.
Among early decliners was No. 2 home improvement chain Lowe’s, whose shares slumped 7 percent after its quarterly profit missed estimates as margins fell.
Celgene also fell about 7 percent after U.S. health regulators rejected the company’s application seeking approval of a key multiple sclerosis drug.
World stocks were also set to snap a record 15-month winning streak due to data signaling a slowdown in China’s manufacturing and Japan’s industrial output.
At 8:41 a.m. ET, Dow e-minis rose 49 points, S&P 500 e-minis were up 4.25 points and Nasdaq 100 e-minis gained 24 points.
A Reuters analysis showed global investors cut their equity exposure to a three-month low in February, though most still expect stocks to test new highs despite rising bond yields.
The U.S. 10-year Treasury yields, the benchmark for global borrowing costs, was last at 2.8953 percent after spiking as much as 2.9250 percent on Tuesday.
Wall Street’s main volatility gauge, the CBOE Volatility index eased to 17.91 points after hitting as much as 18.98 during Powell’s testimony. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)