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Indexes: Dow off 0.02%, S&P 500 up 0.77%, Nasdaq up 1.48%

(Updates with mid-session trading)

By Purvi Agarwal and Shashwat Chauhan

Dec 11 (Reuters) -

The S&P 500 and the Nasdaq climbed on Wednesday after the

latest inflation data bolstered bets on the Federal Reserve

cutting interest rates later this month, while the Dow was

pressured by declines in UnitedHealth ( UNH ).

A Labor Department report showed U.S. consumer prices

increased by the most in seven months in November, though

broadly in line with market expectations.

"There were some fears that you could have had an upside

surprise to inflation and that may have made the Fed rethink

cutting next week," said Tom Bruce, macro investment strategist,

Tanglewood Total Wealth Management.

"With it coming in line with expectations, it clears a

way for a 25 bps cut in next week's meeting."

Bets on the Fed cutting 25 basis point cut next week jumped

to over 96%, compared with an 86% chance before the data,

according to CME's FedWatch Tool. Bets had risen following

Friday's employment report, which showed an uptick in

unemployment alongside a surge in job growth.

Also expected this week is a producer prices reading on

Thursday.

Yields on U.S. government bonds were choppy ahead of an

auction of 10-year notes worth $39 billion later in

the day. It was last at 4.2458%.

At 11:26 a.m. ET, the Dow Jones Industrial Average

fell 9.26 points, or 0.02%, to 44,238.61, the S&P 500

gained 46.31 points, or 0.77%, to 6,081.22 and the Nasdaq

Composite gained 291.54 points, or 1.48%, to 19,978.78.

Eight of the 11 major S&P sub-sectors were trading higher,

with consumer discretionary rising 1.6%, while

communication services added 2.2%.

Most megacap and growth stocks were higher, with Alphabet

up 3.3% and Tesla gaining 3.2%.

On the flip side, the blue-chip Dow was weighed down by a

5.2% decline in UnitedHealth ( UNH ).

Despite running into some turbulence earlier this week, both

the S&P 500 and the Nasdaq are hovering near their all-time

highs, as investors bought into heavyweight technology stocks

all through the year in a bid to catch up with the artificial

intelligence hype.

Another tailwind for equities was former President Donald

Trump's victory in the presidential election in November, as

analysts believe his policies on lower corporate taxes and eased

regulation could boost corporate performance.

Among other movers, GameStop ( GME ) gained 8.8% after the

videogame retailer reported a profit for the third quarter on

cost-saving efforts.

Broadcom ( AVGO ) jumped 5.7% following a report that Apple ( AAPL )

is developing its first server chip specially designed

for artificial intelligence with the company.

Macy's slumped 5.6% after the department-store

bellwether cut its annual profit forecast as persistent weakness

in demand clouded its expectations for the holiday shopping

season.

Match Group ( MTCH ) dipped 6.4% as it said it would report

fourth-quarter revenue below its previous forecast due to a

larger-than-anticipated impact from currency exchange rates.

Advancing issues outnumbered decliners by a 1.31-to-1

ratio on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and six new

lows, while the Nasdaq Composite recorded 74 new highs and 83

new lows.

(Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru;

Editing by Anil D'Silva and Maju Samuel)