(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Nvidia AI developer conference kicks off with new chips in

focus

*

Alphabet jumps on report of talks to build Gemini AI into

iPhone

*

Nasdaq says issues impacting connectivity resolved

*

Indexes up: Dow 0.47%, S&P 1.00%, Nasdaq 1.40%

(Updated at 11:24 a.m. ET/1524 GMT)

By Bansari Mayur Kamdar and Shashwat Chauhan

March 18 (Reuters) -

Wall Street's main indexes rose on Monday, with a rally in

megacap growth stocks such as Alphabet and Tesla supporting a

sharp recovery in the tech-laden Nasdaq ahead of the U.S.

Federal Reserve's meeting this week.

Most market-leading growth stocks rallied, with Alphabet

gaining 6.7% after a media report that Apple ( AAPL )

is in talks to build Google's Gemini AI engine into the iPhone.

The communication services sector jumped 3.6%,

leading gains among the 11 major S&P 500 sectors.

Tesla rose 6.7% after the electric carmaker said it

would increase the price of its Model Y EVs in some European

countries on March 22, by approximately 2,000 euros ($2,177) or

its equivalent in local currencies.

Focus will also be on AI-darling Nvidia ( NVDA ), which

kicks off its annual developer conference, with investors

focused on new chip announcements from Chief Executive Jensen

Huang in an afternoon keynote address. The chipmaker climbed

1.2%.

"The tail wind for the AI darlings sits with Nvidia's ( NVDA ) annual

artificial intelligence conference ... an event that could be so

important to the stock that it has been dubbed the 'AI

Woodstock'," said Art Hogan, chief market strategist at B Riley

Wealth.

Peers Micron Technology ( MU ) and Intel ( INTC ) added 1.5%

and 0.3%, respectively, while the Philadelphia Semiconductor

index climbed 0.5%.

Wall Street, led by optimism around AI, hit fresh all-time

highs in March, before pulling back some gains last week.

Stronger-than-expected inflation figures have prompted

investors to rethink when and by how much policymakers will

lower rates this year, with traders pulling back bets of a June

rate cut to around 59% from 71% last week, according to the CME

FedWatch Tool.

A hawkish tilt by the Fed in its policy meeting that

concludes on Wednesday could further pressure the high-flying

indexes.

Goldman Sachs on Monday said they now expect three interest

rate cuts in 2024, compared with four expected earlier, after

inflation came in a bit firmer than expected.

Exchange operator Nasdaq said it has resolved an

issue related to connectivity and stock orders after more than

two hours.

At 11:24 a.m. ET, the Dow Jones Industrial Average

was up 180.81 points, or 0.47%, at 38,895.58, the S&P 500

was up 51.04 points, or 1.00%, at 5,168.13, and the Nasdaq

Composite was up 224.12 points, or 1.40%, at 16,197.29.

U.S.-listed shares of Xpeng climbed 2.9% on the

company's plans to launch a cheaper EV brand amid fierce price

competition.

Boeing ( BA ) shed 1.0% after a media report that a federal

grand jury in Seattle issued a subpoena to the planemaker over

the Jan. 5 midair blowout of a Boeing ( BA ) door plug on an Alaska

Airlines flight.

Super Micro Computer ( SMCI ), which joined the S&P 500 on

Monday, erased early gains and fell 5.6%.

Advancing issues outnumbered decliners by a 1.49-to-1 ratio

on the NYSE and by a 1.20-to-1 ratio on the Nasdaq.

The S&P index recorded 32 new 52-week highs and no new lows,

while the Nasdaq recorded 52 new highs and 78 new lows.