* Indexes up: Dow 1.1%, S&P 500 1%, Nasdaq 1.4%

* Target ( TGT ) slides after warning of tough macro environment

* Nvidia ( NVDA ) to report earnings after markets close

(Updates to afternoon levels)

By Utkarsh Hathi and Ragini Mathur

May 20 (Reuters) - Wall Street's main indexes rose on

Wednesday, as a rebound in chip stocks ahead of Nvidia's ( NVDA )

quarterly results lifted sentiment after a recent selloff driven

by rising bond yields and inflation concerns.

Nvidia ( NVDA ), the world's most valuable company and the

centerpiece of the global AI boom, rose 2%. The company'sresults

are expected after the closing bell.

Investors will crunch the numbers for signs that appetite

for AI infrastructure remains strong enough to support lofty

valuations across the technology and AI space.

The broader chip sector also advanced on Wednesday. Marvell

Technology ( MRVL ) rose 7.8%, Intel ( INTC ) gained 6.3% and

Micron Technology ( MU ) added 3.6%.

The Philadelphia SE Semiconductor index advanced

2.9%.

"Nvidia's ( NVDA ) earnings come at just the right time when the

market needs some reassurance that the promise of AI can

overpower the headwind of rising bond yields," said James

Demmert, chief investment officer at Main Street Research.

"The sticking points in Nvidia's ( NVDA ) earnings report are any

signs of margin compression due to rising memory prices, along

with how the company is navigating sales in China."

U.S. stocks have come under pressure in recent days as a

selloff in global bond markets drove yields higher. Traders were

expecting the U.S. Federal Reserve to raise interest rates at

the turn of the year as the conflict in the Middle East pushes

oil prices higher, reviving inflation worries.

The benchmark 10-year Treasury yield, which touched a

16-month high of 4.687% in the previous session, eased to 4.588%

on Wednesday.

Brent crude futures extended losses on the day,

falling 5.6% to $105.13 after U.S. President Donald Trump said

that negotiations with Iran were in the final stages, though

investors remain wary about the outcome of peace talks as

disruption to Middle Eastern supply continues.

At 11:51 a.m. ET, the Dow Jones Industrial Average

rose 529.35 points, or 1.08%, to 49,894.89, the S&P 500

gained 72.83 points, or 0.99%, to 7,426.44 and the Nasdaq

Composite gained 359.73 points, or 1.39%, to 26,230.44.

Seven of the 11 major S&P 500 sectors traded higher, led by

consumer discretionary and technology, which

rose about 1.8% each.

On the flip side, energy dropped 1.7% as oil prices

fell, while consumer staples slipped 0.5%.

Target ( TGT ) shares fell 4%, weighing on staples, after

the big-box retailer warned of a challenging macroeconomic

backdrop even as it doubled its annual sales-growth forecast.

Retail bellwether Walmart ( WMT ), expected to report quarterly

results on Thursday, was down about 1%.

Due later in the day, minutes from the Fed's latest policy

meeting are being awaited by investors for clues on how

officials are weighing inflation risks.

Markets are now pricing in about a 37% chance of a

25-basis-point rate hike in December, according to CME's

FedWatch tool.

Among other movers, airline stocks were broadly higher amid

falling oil prices, with Delta Air Lines ( DAL ), United

Airlines, Southwest Airlines ( LUV ) and Alaska Air ( ALK )

up between 6% and 10%.

Intuit declined 3.5%. Reuters, citing an internal

memo, reported that the company is laying off about 3,000

employees.

Advancing issues outnumbered decliners by a 3.11-to-1 ratio

on the NYSE, and by a 2.85-to-1 ratio on the Nasdaq.

The S&P 500 posted 16 new 52-week highs and 15 new lows,

while the Nasdaq Composite recorded 62 new highs and 127 new

lows.