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Cardinal Health ( CAH ) falls on losing contracts with OptumRx

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Tesla down after price cuts in several markets

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Indexes up: Dow 0.13%, S&P 0.26%, Nasdaq 0.26%

(Updated at 11:45 a.m. ET/ 1545 GMT)

By Shristi Achar A and Shashwat Chauhan

April 22 (Reuters) -

U.S. stocks rose on Monday in choppy trading after steep

losses in the previous session as easing Middle East tensions

buoyed risk appetite, while investors looked ahead to an

action-packed week with major tech earnings and a key inflation

print.

The Nasdaq and the S&P 500 ended lower on

Friday as Netflix ( NFLX ) shares weighed after a dour quarterly

earnings report, with both the indexes suffering six straight

sessions of declines last week, their longest since October

2022.

Some megacap growth stocks edged higher, with Alphabet

, Amazon.com ( AMZN ) and Apple ( AAPL ) up between

0.3% and 0.7%.

Nvidia ( NVDA ) advanced 2.4%, rebounding from a 10% drop in

the last session.

"This is an over-sold flash relief rally in the face of

a market that has gotten a little bit ahead of itself. Traders

are looking to scoop up a little bit of bargains," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

Tesla, Meta Platforms ( META ), Alphabet and

Microsoft ( MSFT ) will be in focus this week as the companies

gear up to deliver their quarterly numbers. Their performance

could further test the rally in U.S. stocks.

The risk-on mode was also supported by signs of easing

tensions in the Middle East, as Iran's foreign minister said on

Friday Tehran was investigating an overnight attack, adding that

so far a link to Israel had not been proven as he downplayed the

strike.

Equities have sold-off recently as market participants

readjust their interest rate cut expectations from the U.S.

Federal Reserve after a string of strong economic data signaling

persistent inflationary pressures.

Money markets are now pricing in just about 41 basis points

(bps) of rate cuts this year, down from about 150 bps seen at

the beginning of the year, according to LSEG data.

On the docket this week would be the price consumption

expenditure (PCE) index reading for March - the Fed's preferred

inflation gauge - to further ascertain the monetary policy

trajectory.

Fed policymakers were in a media blackout ahead of their

latest policy meeting on May 1.

At 11:45 a.m. ET, the Dow Jones Industrial Average

was up 49.62 points, or 0.13%, at 38,036.02, the S&P 500

was up 12.74 points, or 0.26%, at 4,979.97, and the Nasdaq

Composite was up 39.31 points, or 0.26%, at 15,321.32.

Eight of the 11 S&P 500 sectors were trading higher, with

financial stocks leading gains, up 0.5%

Among single stocks, Tesla fell 4.3% as the electric vehicle

maker cut prices in a number of its major markets, including

China and Germany, following price reductions in the United

States.

Cardinal Health ( CAH ) shed 5.2% after the drug distributor

said its contracts with UnitedHealth Group's ( UNH ) OptumRx,

one of its largest customers, will not be renewed after they

expire at the end of June.

Advancing issues outnumbered decliners by a 1.79-to-1 ratio

on the NYSE and by a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and four new

lows, while the Nasdaq recorded 20 new highs and 142 new lows.