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Chevron ( CVX ) falls after missing Q4 results estimates

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Atlassian ( TEAM ) jumps after upbeat Q3 revenue forecast

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December PCE price index data at 2.6% YoY

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Indexes up: Dow 0.26%, S&P 500 0.43%, Nasdaq 0.82%

(Updates after market open)

By Shashwat Chauhan and Sukriti Gupta

Jan 31 (Reuters) -

Wall Street's main indexes rose on Friday, driven by gains

in Apple ( AAPL ) following its strong sales forecast and a reading of

the U.S. central bank's favored inflation gauge which aligned

with expectations that the Fed would keep borrowing costs

steady.

U.S. prices

increased as expected in December, while consumer spending

surged, suggesting that the Federal Reserve has the leeway to

delay cutting interest rates for longer this year.

Traders

kept

their bets on the Fed waiting until June to resume rate

cuts at 70% after the data was released, futures that settle to

the central bank's policy rate indicated.

Fed Governor Michelle Bowman

said

she still expects declining inflation to allow further

interest-rate cuts this year, but felt rising wages, buoyant

financial markets, geopolitical risks and upcoming Trump

administration policies could slow the process and keep price

pressures elevated.

The central bank held interest rates steady in its latest

rate decision earlier this week, and Fed Chair Jerome Powell

said there would be no rush to cut them again until inflation

and jobs data made it appropriate to do so.

Apple ( AAPL ) gained 2.9% on upbeat executive comments in

its earnings on Thursday, in a sign the company expects to

recover from a dip in iPhone sales as it rolls out AI features.

"We still have a 'buy' recommendation on Apple ( AAPL ) and think

that the company is showing some resiliency. Investors were

expecting the results to be even weaker than anticipated, so the

market is rewarding Apple ( AAPL ) for holding up quite well," said Sam

Stovall, chief investment strategist at CFRA Research.

Chevron ( CVX ) fell 2.8% after reporting fourth-quarter

earnings below estimates.

Atlassian ( TEAM ) jumped 18.5% after the enterprise

software developer projected third-quarter revenue above

estimates and raised its annual revenue forecasts.

At 09:40 a.m. ET, the Dow Jones Industrial Average

rose 115.92 points, or 0.26%, to 44,998.05, the S&P 500

gained 25.98 points, or 0.43%, to 6,097.15, and the Nasdaq

Composite gained 160.80 points, or 0.82%, to 19,842.55.

Six of the 11 S&P 500 sectors traded higher, with

communication services leading gains with a 1.1% rise,

while technology added 0.6%.

The S&P 500 and the Nasdaq were set for

marginal losses for the week as tech shares suffered a rout

after Chinese startup DeepSeek unveiled a breakthrough in

low-cost artificial-intelligence models, triggering a selloff in

AI-linked stocks.

Despite this week's volatility, all three major indexes were

on track for monthly gains, with the S&P 500 being less than 1%

short of its all-time high, hit last week.

Meanwhile, global markets stayed vigilant after President

Donald Trump said on Thursday that the U.S. would impose a 25%

tariff on imports from Mexico and Canada, repeating his warning

ahead of his previously announced Saturday deadline.

Deckers Outdoor ( DECK ) dropped 13.3% after the UGG

bootmaker's annual sales forecast raise missed lofty

expectations following a strong holiday quarter.

Declining issues outnumbered advancers by a 1.09-to-1 ratio

on the NYSE, while advancing issues outnumbered decliners by a

1.28-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 34 new highs and 27 new

lows.