* Stock has their worst day in 3 weeks on Tuesday
* Dollar hits new 8-year high after brief retreat
* Michael Kors slumps on slowest ever sales growth
* Tiffany gains as results beat estimates
* Futures up: Dow 26 pts, S&P 2.5 pts, Nasdaq 6.50 pts (Adds details, comment, updates prices)
By Tanya Agrawal
May 27 (Reuters) - U.S. stocks were set to open higher on Wednesday, a day after notching their steepest fall in three weeks as the dollar enjoyed its biggest rally in two years.
That rally was spurred by buoyant U.S. economic data on Tuesday, which fueled expectations that an interest rate hike could come sooner rather than later this year.
The strong dollar, which means that U.S. companies earn less when sales abroad are brought back, and concerns about Greece has weighed heavily on Wall Street.
“The market seems to be in a relief rally and looks like its catching its breath after yesterday’s selloff,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
“There will be a rate hike this year, but it won’t be an aggressive, meeting-to-meeting hike.”
Greece and its European creditors have played down fears that Athens would default on a payment to the International Monetary Fund next week.
After briefly falling back, the dollar soared to a fresh eight-year high against the yen on Wednesday.
S&P 500 e-mini futures were up 2.50 points and their fair value - a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract - indicated a higher open.
Dow Jones industrial average e-mini futures rose 26 points and Nasdaq 100 e-mini futures lost 6.50 points.
Tiffany’s shares were up 7.3 percent to $91.81 in premarket trading after the luxury jeweler’s quarterly profit beat estimates.
Michael Kors Holdings fell 16 percent to $51 after the handbag maker reported its slowest quarterly revenue growth since it went public in December 2011.
Workday fell 8.3 percent to $84.65 after the software maker for human resource services forecast current-quarter billings below market expectations and reported a bigger quarterly net loss.
Chico’s dropped 6.1 percent to $15.69 after the women’s apparel retailer reported first-quarter sales that missed analysts’ average estimate.
GlobeImmune slumped 61.4 percent to $3.18 after it hepatitis B failed in a mid-stage trial. (Editing by Savio D‘Souza)