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Survey: US business activity steady in September

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Intel ( INTC ) gains on report of Apollo's investment offer

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GM slips after Bernstein downgrades stock

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Indexes up: Dow 0.13%, S&P 500 0.23%, Nasdaq 0.17%

(Updates to mid-afternoon, adds analyst comment)

By Echo Wang

Sept 23 (Reuters) - Wall Street's main indexes rose in

mid-afternoon on Monday as investors assessed whether a trend

will develop in the week following the Federal Reserve's rate

cut.

The gains come amid comments from Fed policymakers and

steady factory activity data, building on last week's sharp

market rally after the central bank's decision to lower interest

rates.

The Fed's pivotal move last week lifted major indexes to

monthly gains, defying the historical trend of September as a

weak month for equities.

Comments from a number of policymakers were the main focus

on Monday as investors searched for clues on why the central

bank kicked off its easing cycle with an outsized 50 basis-point

cut.

Fed officials including Raphael Bostic, Neel Kashkari and

Austan Goolsbee supported the central bank's last rate cut and

voiced support for more cuts in the rest of the year.

Trader bets, as per the CME Group's FedWatch tool, initially

favored a larger Fed move at its upcoming November meeting,

after Governor Christopher Waller on Friday flagged that

upcoming inflation data could undershoot the Fed's 2% target.

However, the bets have swayed since then and now appear to

be a coin-toss, with markets expecting a total reduction of 74

basis points by year-end, according to LSEG data.

On the data front, U.S. business activity remained steady in

September, while average prices for goods and services increased

at the fastest pace in six months, potentially signalling a rise

in inflation in the months ahead.

"I think investors are still just sort of taking a

wait-and-see attitude, if indeed a soft landing is the most

likely outcome." said Sam Stovall, chief investment strategist

of CFRA Research in New York.

At 2:52 p.m. EDT the Dow Jones Industrial Average

rose 54.15 points, or 0.13%, to 42,117.51, the S&P 500

gained 13.21 points, or 0.23%, to 5,715.76 and the Nasdaq

Composite gained 30.50 points, or 0.17%, to 17,978.54.

Eight of the 11 S&P 500 sectors were higher. Consumer

discretionary stocks led gains with a 1.15%

rise, while healthcare stocks declined 0.19%.

Having rallied for much of the year, the S&P 500 is a

whisker away from an all-time high and the blue-chip Dow

hit another intraday record high.

Among rate-sensitive growth stocks, Tesla jumped

4.59%, while Meta Platforms ( META ) rose 0.65% after Citigroup

lifted its price target on the stock.

The Russell 2000 index, tracking small caps, was off

0.23%.

All eyes are on Friday's personal consumption expenditure

figure for August - the Fed's preferred inflation gauge.

Analysts indicate this release will be the week's most

significant catalyst.

Among top movers, Intel ( INTC ) rose 3.41% after a report

showed Apollo offered to make an investment of as much

as $5 billion in the chipmaker.

General Motors ( GM ) slipped 2.31% after Bernstein

downgraded the carmaker's stock to "market perform" from

"outperform."

Advancing issues outnumbered decliners by a 1.49-to-1 ratio

on the NYSE. There were 427 new highs and 33 new lows on the

NYSE.

The S&P 500 posted 59 new 52-week highs and one new low

while the Nasdaq Composite recorded 74 new highs and 114 new

lows.