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

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

*

PCE data shows inflation rose 2.5% in July

*

Marvell ( MRVL ) jumps after forecasting Q3 results above estimates

*

Ulta Beauty ( ULTA ) tumbles following annual forecast trim

*

Intel ( INTC ) up on report chipmaker exploring options

*

Indexes up: Dow down 0.21%, S&P 500 up 0.11%, Nasdaq up

0.28%

(Updated at 11:42 a.m. ET/ 1542 GMT)

By Johann M Cherian and Purvi Agarwal

Aug 30 (Reuters) -

The Nasdaq and the S&P 500 inched up in choppy trading on

Friday ahead of the long weekend, after signs of moderating

price pressures strengthened bets for an interest-rate cut at

the Federal Reserve's upcoming meeting in September.

The

Personal Consumption Expenditure index

, the central bank's preferred inflation gauge, rose 2.5% in

July on an annual basis, compared to an estimate of 2.6%,

according to economists polled by Reuters. On a monthly basis,

it rose 0.2% as expected.

Among rate-sensitive megacaps, Amazon.com ( AMZN ) and

Microsoft ( MSFT ) added 1.8% and 0.4%, respectively. Chip

stocks also rose, with Broadcom ( AVGO ) climbing 2.3% and

Advanced Micro Devices ( AMD ) gaining 0.5%, aiding the

Philadelphia SE Semiconductor index's 1.5% rise.

Friday's PCE report is the last one before the Fed's

September meeting and follows Chair Jerome Powell's comments

last week, when he expressed support for an imminent policy

adjustment.

Odds of a 25-basis-point reduction stood at 67.5%,

according to the CME Group's FedWatch Tool, while those of a

50-bps reduction were at 32.5%.

"The data bakes in further that there is going to be a start

to the rate-cutting cycle," said Thomas Martin, senior portfolio

manager at GLOBALT Investments.

Martin said investors remain focused on the labor

market, with a slew of employment reports scheduled for the

coming week.

Global markets are nearing the end of a tumultuous month for

riskier assets, after signs of a sudden moderation in the labor

market sparked recession fears in the United States in early

August. The influence of the Japanese yen carry trade

worsened the rout.

Risk-taking has improved since then, with the Dow

hovering near record highs, as subsequent data including

Thursday's upward revision to economic growth soothed investor

nerves.

At 11:42 a.m. ET, the Dow Jones Industrial Average

was down 86.41 points, or 0.21%, at 41,248.64, the S&P 500

was up 6.36 points, or 0.11%, at 5,598.32, and the Nasdaq

Composite was up 49.01 points, or 0.28%, at 17,565.44.

Most of the 11 S&P 500 sectors traded flat, but Consumer

Discretionary bucked the trend with a 0.7% advance.

Energy was the biggest laggard with a 0.6% drop,

tracking lower oil prices.

The tech-focused Nasdaq and the S&P 500

closed lower on Thursday after Nvidia ( NVDA ) failed to match

sky-high investor expectations, despite upbeat results and a

broadly in-line forecast. The AI-chip bellwether was up 0.4%

after a 6.4% drop in the previous session.

The benchmark S&P 500 and the Dow are set for monthly gains,

while the Nasdaq is on track to end August lower, if losses

hold.

Among other stocks, Marvell Technology ( MRVL ) jumped 7.9%

after forecasting third-quarter results above estimates.

Ulta Beauty ( ULTA ) slid 3.0% after it trimmed its annual

results forecasts, while Intel ( INTC ) rose 9.2% following a

report it was exploring options which could include a merger or

a split.

Dell Technologies ( DELL ) advanced 3.4% after lifting its

annual revenue and profit forecasts.

Trading volumes are expected to thin ahead of the extended

weekend due to the Labor Day holiday.

Declining issues outnumbered advancers for a 1.06-to-1 ratio

on the NYSE, and by a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 57 new 52-week highs and one new low,

while the Nasdaq recorded 63 new highs and 51 new lows.