(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

US producer prices rise less than expected in July

*

Starbucks ( SBUX ) up after naming Chipotle boss Brian Niccol as

CEO

*

BuzzFeed ( BZFD ) jumps on smaller Q2 loss

*

Indexes up: Dow 0.54%, S&P 500 1.08%, Nasdaq 1.76%

(Updated at 11:44 a.m. ET/1544 GMT)

By Shubham Batra and Shashwat Chauhan

Aug 13 (Reuters) -

U.S. stocks hit a near two-week high on Tuesday after a

softer producer prices data reinforced bets of an interest rate

cut by the Federal Reserve in September.

Megacap and growth stocks gained, with Nvidia ( NVDA ) set

to lead the charge for a second session, rising over 5%. The

Philadelphia SE Semiconductor Index rose 2.8%, touching a

near two-week high.

U.S. producer prices increased less than expected in July as

a rise in the cost of goods was tempered by cheaper services,

indicating that inflation continued to moderate. In the 12

months through July, the PPI increased 2.2% after climbing 2.7%

in June.

"It feels like 'back to normal' for markets as tech

stocks lead the way higher again following the lower U.S. PPI

data. The reading has given heart to beleaguered investors, who

remain skittish after last week's volatility," said Chris

Beauchamp, chief market analyst at IG.

The dollar and the Treasury yields slid after the

data, while traders now see a 55% chance of a 50-basis-point

rate cut by the U.S. central bank from less than 50% before the

report, according to CME's FedWatch Tool.

Investors now await all-important consumer price (CPI)

figures for July on Wednesday and retail sales data on Thursday

to firm bets on an aggressive rate cut by the U.S. central bank.

Stocks wobbled on Monday with the S&P 500 nearly flat

and the Nasdaq eking out modest gains, following a

turbulent week marked by mixed economic reports and a rate hike

by Japan's central bank.

At 11:44 a.m. ET, the Dow Jones Industrial Average

rose 213.87 points, or 0.54%, to 39,570.88, the S&P 500

gained 57.83 points, or 1.08%, to 5,402.22 and the Nasdaq

Composite gained 294.92 points, or 1.76%, to 17,075.53.

Nine of the 11 major S&P sectors were trading higher,

with information technology and communication services

leading gains.

Energy shares dipped on lower oil prices as OPEC's

move to cut its forecast for demand growth in 2024 tempered

fears of supply risks posed by widening conflict in the Middle

East.

Starbucks ( SBUX ) was the top performer on the S&P 500,

rising 20.5% and was on track for its biggest one-day percentage

gain ever, after the coffee giant appointed Chipotle Mexican

Grill's ( CMG ) head Brian Niccol as chairman and CEO.

Chipotle dropped 9.6%.

Home Depot ( HD ) reversed losses and climbed nearly 1%. The

home improvement chain forecast a decline in annual profit and a

bigger drop in its annual comparable sales.

BuzzFeed ( BZFD ) jumped 19.6% after the digital media

company narrowed its net loss in the second quarter to $6.6

million from $22.5 million a year earlier.

Investors will look ahead to comments from Atlanta Fed

President Raphael Bostic, due at 1:15 p.m. ET, on the outlook

for the U.S. economy.

Advancing issues outnumbered decliners by a 2.98-to-1 ratio

on the NYSE and by a 2.19-to-1 ratio on Nasdaq.

The S&P 500 posted 14 new 52-week highs and three new

lows, while the Nasdaq Composite recorded 45 new highs and 98

new lows.