*

Walmart ( WMT ) falls after CFO flags Q2 as challenging

*

Spirit AeroSystems ( SPR ) falls after report of Boeing ( BA ) deal

*

Indexes: Dow down 0.75%, S&P up 0.28%, Nasdaq up 1.11%

(Updates prices at 2:14 p.m. EDT (1814 GMT))

By Sinéad Carew and Ankika Biswas

June 25 (Reuters) - The Nasdaq climbed 1% on Tuesday,

buoyed by strength in Nvidia ( NVDA ) and other tech megacaps,

while the Dow slipped as retailers weighed and investors awaited

a crucial inflation print this week for further cues on the path

of U.S. monetary policy.

AI chip firm Nvidia ( NVDA ) soared more than 5% after a

three-session sell-off and the broader chip sector outperformed

with the Philadelphia Semiconductor index adding 1.6%.

Technology led sector gains, up 1.6%, recovering

from a three-day slide while megacaps including Alphabet

and Meta Platforms ( META ) boosted the S&P 500

communication services index, which was up 1.4%.

The recent pullback in tech and tech-adjacent stocks had

prompted investors to lap up lagging sectors, with utilities

and energy enjoying strong gains on Monday.

But investors were going in the opposite direction on

Tuesday and repositioning themselves back into popular

technology stocks after the short break, David Lefkowitz, head

of U.S. equities at UBS Global Wealth Management.

"What we'd been seeing over the past few weeks is the AI

levered companies sucking all the oxygen away from other parts

of the market. We saw that reverse for a few days and we're now

seeing that dynamic reassert itself," he said.

"We don't have a lot of data to sink our teeth into today.

Given that, most of the moves are more positioning."

At 2:14 p.m. EDT the Dow Jones Industrial Average

fell 297.08 points, or 0.75%, to 39,114.13, the S&P 500

gained 15.10 points, or 0.28%, to 5,462.97 and the Nasdaq

Composite gained 195.09 points, or 1.11%, to 17,691.90.

Among the S&P 500's 11 major industry sectors only two were

gaining ground, with real estate leading declines,

down 1.3%, followed by materials, down 1.2%.

The Dow pulled back from a one-month high hit on Monday.

Home improvement retailer Home Depot ( HD ) was the Dow's

biggest percentage decliner, falling 3.8%.

Retail giant Walmart ( WMT ) caused some jitters with a 2.8%

drop after its CFO flagged the second quarter as the "most

challenging quarter" at the NYSE 2024 European Investor

Conference in London.

The Dow Jones Transport Average dropped 1.3% after

recent gains with freight rail company Norfolk Southern ( NSC )

leading declines after a dimmer analyst view and a National

Transportation Safety Board review of a derailment last year.

Index heavyweight FedEx ( FDX ) was down about 1% ahead of its

quarterly update due after the close.

The most anticipated economic data due this week is the

personal consumption expenditures (PCE) price index - the Fed's

preferred inflation gauge - on Friday.

Spirit AeroSystems ( SPR ) slumped 4.3%. A media report on

Monday said Boeing ( BA ) offered to acquire the airplane

fuselage maker in a deal funded mostly by stock that values its

key supplier at about $35 per share. Boeing ( BA ) shares were down

2.3% on Tuesday.

Cruise operator Carnival Corp ( CCL ) gained 8.4% after

raising its annual profit forecast for the second time this

year.

Declining issues outnumbered advancers by a 2-to-1 ratio on

the NYSE where there were 95 new highs and 79 new lows.

On the Nasdaq, 1,696 stocks rose and 2,453 fell as declining

issues outnumbered advancers by a 1.45-to-1 ratio. The Nasdaq

Composite recorded 39 new highs and 146 new lows.

The S&P 500 posted 19 new 52-week highs and 3 new lows.