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Tesla soars after Q2 delivery data

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Paramount Global ( PARAA ) gains on possible IAC bid

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Fed Chair Powell says risks becoming more balanced

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Job openings rise in May

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Lilly falls as Biden calls for lower obesity drug prices

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Indexes up: Dow 0.2%, S&P 0.4%, Nasdaq 0.7%

(Updates at 2:20 p.m. EDT/1820 GMT)

By Ankika Biswas, Lisa Pauline Mattackal and Saeed Azhar

July 2 (Reuters) - Wall Street's main stock indexes rose

on Tuesday, boosted by gains in Tesla and megacap

growth stocks, but volumes were thin ahead of the July Fourth

holiday and the closely watched release of June nonfarm payrolls

on Friday.

Tesla surged 8.8% to its highest level since the start of

January after the EV maker reported a smaller-than-expected 5%

drop in vehicle deliveries in the second quarter, pushing the

consumer discretionary sector to the top of the S&P

500 sector indexes.

Megacap stocks such as Apple ( AAPL ) climbed 1.4%, while

Amazon.com ( AMZN ) rose 1.4% and Alphabet also edged

up, with U.S. Treasury yields slipping across the board.

U.S. Federal Reserve Chairman Jerome Powell told a panel

that recent economic data represented "significant progress,"

though he noted that the Fed needed to see more before changing

policy. Meanwhile, Chicago Fed President Austan Goolsbee said he

sees some "warning signs" of economic weakness and that the

central bank's goal is to get inflation down without stressing

the labor market.

"What the Fed really wants to see is a further click up in

unemployment and then a slowdown with regards to new job

creation," said Genter Capital Management CEO Dan Genter, who

added that the recent moderation in inflation could be a green

light for the Fed to start considering rate cuts.

The job openings and labor turnover survey, or JOLTS, showed

job openings increased in May after posting outsized declines in

the prior two months, but layoffs picked up amid slowing

economic activity.

The data is the first in this week's series of U.S. jobs

reports, particularly Friday's closely watched release of June

nonfarm payrolls, which will be crucial in assessing whether the

U.S. labor market remains resilient against the backdrop of

decades-high interest rates.

As recent data signals a renewed moderation in inflation and

some signs of economic weakness, market participants are holding

on to their bets of around two interest rate cuts by this

year-end, seeing a 69% chance of easing starting in September,

as per LSEG's FedWatch data.

However, AI chip leader Nvidia ( NVDA ) dropped 1.4%, with

the trend in other chip stocks largely mixed. Nvidia ( NVDA ) is up about

148% year-to-date.

Investors are divided over the sustainability of the market

rally in which the S&P 500 index has risen 14.75% in the first

half of the year.

"We see an additional 10% before year end, which is kind of

frightening because if we're at 5500 or so (on the S&P 500), 10%

on that means we really have to see earnings justify that type

of multiple," said John Lynch, chief investment officer of

Comerica Wealth Management.

Barry Bannister, chief U.S. equity strategist at Stifel,

in a note said he expects the S&P 500 could correct to 4,750

points by the end of third quarter as GDP will slow, but

inflation will pick up moderately in second half of 2024.

At 2:20 p.m. EDT the Dow Jones Industrial Average

rose 82.64 points, or 0.21%, to 39,252.16, the S&P 500

gained 20.75 points, or 0.38%, to 5,495.84 and the Nasdaq

Composite gained 115.67 points, or 0.65%, to 17,994.97.

Trading volumes are expected to be light throughout the

week, with the equity market closing early on Wednesday and shut

all day Thursday for U.S. Independence Day.

Among others, the U.S. listing of Novo Nordisk

lost 1.7% after U.S. President Joe Biden and Senator

Bernie Sanders called on the Danish drugmaker to cut prices of

its Ozempic and Wegovy drugs. Rival Eli Lilly ( LLY ) dropped

0.7%.

Paramount Global ( PARAA ) climbed 3.8% after news that

billionaire Barry Diller's digital-media conglomerate IAC

was exploring a bid to take control of the media giant.

Advancing issues outnumbered decliners by a 1.63-to-1 ratio

on the NYSE.

The S&P 500 posted 13 new 52-week highs and 4 new lows while

the Nasdaq Composite recorded 35 new highs and 167 new lows.