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Indexes up: Dow 1.99%, S&P 500 1.61%, Nasdaq 2%

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Traders now see a near 90% chance of September rate cut

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S&P 500 set to snap five-day losing streak if gains hold

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Intuit falls after forecasting Q1 revenue growth below

estimates

(Updates stocks percentage moves, quotes)

By Shashwat Chauhan, Sanchayaita Roy and Carolina Mandl

Aug 22 (Reuters) - Wall Street's main indexes rallied on

Friday, as investors celebrated comments from U.S. Federal

Reserve Chair Jerome Powell hinting at a possible interest-rate

cut during his long-awaited Jackson Hole Symposium speech.

His comments opened the door to a rate cut at the Fed's

September 16-17 meeting, although Powell stressed the importance

of the jobs and inflation data that will be available by then.

"The Fed, or at least Powell, is tilting towards a more

dovish stance in order to prop up the weakening jobs market.

That's actually a dovish shift that we see in the Fed policy

that matches the recent market expectations," said Ipek

Ozkardeskaya, senior analyst at Swissquote Bank.

"The fact that the Fed is now preparing to give the

market that 25-basis point-rate cut, at least that they were

expecting, is obviously creating a lot of euphoria," she added.

Traders boosted bets on a September rate cut after

Powell's comments, now placing a nearly 90% chance of a

reduction, versus about 75% before Powell's remarks.

At 01:57 p.m. the Dow Jones Industrial Average rose

887.83 points, or 1.99%, to 45,680.14, hitting an all-time high.

The S&P 500 gained 102.14 points, or 1.61%, to

6,472.31 and the Nasdaq Composite gained 421.85 points,

or 2.00%, to 21,520.79.

Ten of the 11 S&P 500 sub-sectors traded higher, with

consumer discretionary jumping almost 3%, while the

communication services climbed 2.3%.

The Philadelphia SE Semiconductor Index soared 3.3%,

while most megacap growth stocks also jumped. Tesla led

gains with a 5.7% rise.

The rate-sensitive Russell 2000 Index surged 3.9%,

hitting its highest level so far this year.

If current gains hold, the S&P 500 is set to snap a five-day

losing streak after a broad selloff in heavyweight technology

stocks pressured U.S. equities this week.

The Dow and the S&P 500 were on track for mild weekly gains,

while the Nasdaq was set for marginal weekly declines.

U.S. stocks have rebounded sharply from April lows - when

markets were rattled by President Donald Trump's tariff

announcements. Recently, indexes have been getting back up to

record highs.

A spate of resilient earnings, optimism around trade deals

and growing chances of interest-rate cuts have been some of the

main gain drivers, although some concerns persist.

"Investors are cheering Powell's comments like it's the

start of a rate-cut parade. But one cut won't move the needle on

consumer spending. The bigger question is whether this marks a

true pivot in Fed policy - or if rising tariffs will force it to

slam the brakes before that shift even begins," said Zak

Stambor, senior analyst for retail and ecommerce at Emarketer.

Earlier in the day, UBS Global Wealth Management lifted its

year-end target for the S&P 500 for the second time in two

months, betting on corporate earnings strength, easing trade

tensions and expectations of interest-rate cuts.

Among other top movers, Intuit dropped 4.8% after

the TurboTax-maker forecast first-quarter revenue growth below

analysts' estimates due to weak performance at its Mailchimp

marketing platform.

Workday shed 3.2% after the human resources

software provider provided an in-line outlook for the current

quarter.

Advancing issues outnumbered decliners by a 10.61-to-1 ratio

on the NYSE. There were 520 new highs and 39 new lows on the

NYSE.

The S&P 500 posted 35 new 52-week highs and no new lows

while the Nasdaq Composite recorded 152 new highs and 40 new

lows.