* Indexes up: Dow 1.03%, S&P 500 0.66%, Nasdaq 0.65%

* Consumer discretionary shares lead gains

* Homebuilders soar after Trump cancels signing of US

housing bill

* Micron earnings due after the bell

(Updates with mid-afternoon prices, analyst comment)

By Twesha Dikshit and Joel Jose

June 24 (Reuters) - Wall Street's major indexes rose with

broad-based gains on Wednesday after two straight sessions of

declines, as a sharp retreat in oil prices aided sentiment while

investors awaited Micron's earnings.

Oil prices fell to their lowest since the start of the Iran

war as more oil tankers were expected to move out of the Strait

of Hormuz. U.S. President Donald Trump said Iran had told

Washington that no tolls were being sought.

Airlines and cruise operators moved higher with the S&P 500

passenger airlines index last up 4.4% at an all-time

high. Industrial shares rose 1.8%.

With high-flying tech shares coming under renewed pressure,

other areas of the market such as healthcare and consumer

staples have benefited in recent days.

"There is a bit of profit-taking right off the top when you

look at some of the names that have been rotating out,

especially yesterday, and where the money is going into," said

Brian Mulberry, chief market strategist at Zacks Investment

Management.

"It seems like a really clear rotation of people blowing off

the top and coming back into names that are either undervalued

or a little bit overlooked."

Concerns around debt-backed spending by hyperscalers and a

potentially more hawkish Federal Reserve fueled the market

downturn this week, wiping off more than $1 trillion in market

value from the Nasdaq 100.

Increased volatility in tech names has intensified focus on

Micron's results due after the bell, as it is a key beneficiary

of surging demand from companies investing billions in AI

infrastructure. The stock has surged more than 250% in 2026 and

was last down 1.3%.

Nine of the 11 major S&P 500 sectors moved higher, with the

consumer discretionary sector rising the most at 2.4%.

At 11:42 a.m. ET, the Dow Jones Industrial Average

rose 527.17 points, or 1.03%, to 52,194.01, the S&P 500

gained 48.75 points, or 0.66%, to 7,414.21 and the Nasdaq

Composite gained 165.68 points, or 0.65%, to 25,752.72.

Homebuilders soared after Trump canceled a planned signing

of bipartisan legislation aimed at speeding up availability of

affordable housing. Hovnanian Enterprise ( HOV ) jumped 13.5%,

while Pultegroup ( PHM ) and Toll Brothers ( TOL ) rose 9.4% and

8.4%, respectively.

Middle East developments were closely monitored with the

U.S. and Iran offering conflicting accounts on a range of key

issues including financial incentives for Iran, control over the

Strait of Hormuz and Israel's war in Lebanon.

Optimism surrounding an end to the war and strong earnings

growth expectations have put the S&P 500 on track for its

strongest quarterly gain in six years, despite expectations of

higher interest rates.

Traders are adding to bets of a second rate hike from the

Fed by December-end, according to CME Group's FedWatch tool,

from prior expectations of a single 25-basis-point rise.

The closely watched Personal Consumption Expenditures Price

Index, the Fed's preferred inflation gauge, could offer fresh

insight on the monetary policy path on Thursday.

Among other movers, Cerebras Systems ( CBRS ) tumbled 17.3%

after the chip designer forecast full-year profit margins would

drop below first-quarter figures in its debut report after going

public.

Hertz tumbled 28% after the car rental firm said it

expects second-quarter adjusted core earnings near the lower end

of its forecast range and announced a proposed offering of $100

million of common stock.

Advancing issues outnumbered decliners by a 1.56-to-1 ratio

on the NYSE and by a 1.55-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and 3 new lows while

the Nasdaq Composite recorded 167 new highs and 105 new lows.

(Reporting by Twesha Dikshit and Joel Jose in Bengaluru;

Editing by Mrigank Dhaniwala and Devika Syamnath)