*

S&P win streak at four; Dow on best run since Dec

*

Disney ( DIS ) has worst day since Nov. 22 on TV, box office

weakness

*

Tesla falls on China-made EV sales drop in April

*

Palantir ( PLTR ) slides on lower-than-expected annual revenue

forecast

*

Indexes: Dow up 0.08%, S&P up 0.13%, Nasdaq down 0.1%

(Updates with closing prices)

By David French

May 7 (Reuters) - The S&P 500 and Dow Jones Industrial

Average both clung onto gains to ended slightly higher on

Tuesday, extending recent winning streaks fueled by renewed

expectations that the Federal Reserve will cut interest rates

this year.

The advances pushed the S&P 500 to a fourth straight

higher close, and its best winning run since March. For the Dow

, it is now on its longest positive run since December

2023, gaining for the fifth session in a row.

The benchmark performances came despite Walt Disney ( DIS )

slumping 9.5%, its biggest percentage fall since November 2022,

as a surprise profit in its streaming entertainment division was

eclipsed by a drop in its traditional TV business and weaker box

office.

Despite Disney's ( DIS ) drag, markets have been generally buoyed by

a weaker-than-expected labor market report last week, which

fueled bets that the U.S. central bank will cut rates.

The Nasdaq Composite has also benefited, but it

slipped lower in afternoon trade on Tuesday and closed slightly

lower, snapping its own winning run at three.

"I think the market is in this little holding pattern until

the big data comes next week," said Garrett Melson, portfolio

strategist at Natixis Investment Manager Solutions, referring to

the Producer Price Index (PPI) due on May 14, and the Consumer

Price Index (CPI) scheduled for May 15.

Generally, the Fed and policymakers have been consistent in

their message in recent weeks that rate cuts will come but the

central bank is going to be cautious in implementing them.

This meant, on a day lacking major data announcements,

markets shrugged off comments from Minneapolis Federal Reserve

President Neel Kashkari that the Fed may need to hold rates

steady for the remainder of the year due to stalled inflation

and housing market strength.

Overall, Friday's payrolls data and better-than-expected

earnings reports have helped soothe investor jitters around

sticky inflation and a robust economy that have kept the rates

elevated.

Traders are anticipating rate cuts of 46 basis points (bps)

from the Fed by the end of 2024, according to LSEG's interest

rate probabilities app, with the first pivot to rate cut seen in

September and another in December. They were expecting only one

cut before the labor report last week.

"The market is far more hypersensitive to the data than the

Fed is," said Natixis' Melson, adding that "the bar for the Fed

to abandon the easing bias is extremely high."

The S&P 500 gained 6.96 points, or 0.13%, to 5,187.70

points, while the Nasdaq Composite lost 16.69 points, or

0.10%, to 16,332.56. The Dow Jones Industrial Average

rose 31.99 points, or 0.08%, to 38,884.26.

Megacap stocks Alphabet and Meta Platforms ( META )

rose 1.9% and 0.6%, respectively, boosting the main

indexes.

Nvidia ( NVDA ) fell 1.7% after the Wall Street Journal

reported that Apple ( AAPL ) was developing its own chip to run

artificial intelligence (AI) software in data centers.

Apple ( AAPL ) gained 0.4% as it introduced a new chip called the M4,

but put the new chip in an iPad Pro model rather than a laptop.

Tesla fell 3.8% after data showed the U.S.

automaker sold 62,167 China-made electric vehicles in April,

down 18% from a year earlier.

Palantir Technologies ( PLTR ) tumbled 15.1%, its sharpest

one-day decline since May 2022, after the data analytics firm's

annual revenue forecast fell short of analysts' estimates.

The S&P 500 posted 49 new 52-week highs and 2 new lows while

the Nasdaq recorded 155 new highs and 69 new lows.