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PCE data shows inflation rose 2.5% in July

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Marvell ( MRVL ) jumps after forecasting Q3 results above estimates

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Ulta Beauty ( ULTA ) tumbles following annual forecast trim

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Intel ( INTC ) up on report chipmaker exploring options

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Indexes up: Dow 0.28%, S&P 500 0.65%, Nasdaq 0.89%

(Updated at 09:44 a.m. ET/1344 GMT)

By Johann M Cherian and Purvi Agarwal

Aug 30 (Reuters) -

Wall Street's main indexes rose on Friday and were set for

monthly gains after a key inflation report reiterated moderating

price pressures, cementing bets for an interest-rate cut at the

U.S. Federal Reserve's upcoming meeting in September.

The

Personal Consumption Expenditure index

, the central bank's preferred inflation gauge, rose 2.5% in

July on an annual basis compared to an estimate of 2.6%,

according to economists polled by Reuters. On a monthly basis,

it rose 0.2% as expected.

Among rate-sensitive megacaps, Amazon.com ( AMZN ) and

Microsoft ( MSFT ) gained 1.3% and 0.7%, respectively. Chip

stocks rose; Broadcom ( AVGO ) added 3.4% and Advanced Micro

Devices ( AMD ) climbed 1.4%, aiding the Philadelphia SE

Semiconductor index's 2.2% rise.

Friday's PCE report is the last before the Fed's

September meeting and follows Chair Jerome Powell's comments

last week expressing support for an imminent policy adjustment.

"Powell's speech at Jackson Hole reiterated several times

that we're approaching our desired target. Nothing here is going

to cause me to change anything," said Andre Bakhos, managing

member at Ingenium Analytics.

"We still have the jobs report coming out next Friday,

which would even be a greater concern."

Odds of a 25-basis-point reduction stood at 69.5%,

according to the CME Group's FedWatch Tool, while those of a

50-bps reduction were at 30.5%.

Global markets are nearing the end of a tumultuous month for

riskier assets, after signs of a sudden moderation in the labor

market sparked fears of a quicker-than-expected slowdown in the

world's largest economy in early August. The influence of the

Japanese yen carry trade worsened the rout.

Risk-taking has improved since then, with the Dow

near record highs and on track for monthly gains, as subsequent

data including Thursday's upward revision to economic growth

soothed investor nerves.

At 09:44 a.m. the Dow Jones Industrial Average rose

114.66 points, or 0.28%, to 41,449.71, the S&P 500 gained

36.45 points, or 0.65%, to 5,628.41 and the Nasdaq Composite

gained 156.25 points, or 0.89%, to 17,672.68.

Ten of the 11 S&P 500 sectors advanced, led by a 1% rise

in tech stocks.

The tech-focused Nasdaq and the S&P 500

closed lower on Thursday after Nvidia ( NVDA ) failed to match

sky-high investor expectations, despite upbeat results and a

broadly in-line forecast. The AI-chip bellwether was up 1.7%

after a 6.4% drop in the previous session.

The S&P 500 is close to an all-time high, poised for a

monthly gain of 1.8%, while the Nasdaq is up 0.3% in August.

Marvell Technology ( MRVL ) jumped 6.3% after forecasting

third-quarter results above estimates.

Ulta Beauty ( ULTA ) slid 4.4% after trimming its annual

results forecasts.

Intel ( INTC ) rose 5.9% following a report that it was

exploring options which could include a merger or a split.

Dell Technologies ( DELL ) advanced 2.5% after lifting its

annual revenue and profit forecasts.

Trading volumes are expected to thin ahead of the extended

weekend due to the Labor Day holiday.

Advancing issues outnumbered decliners by a 3.15-to-1 ratio

on the NYSE, and by a 2.43-to-1 ratio on the Nasdaq.

The S&P 500 posted 49 new 52-week highs and one new low,

while the Nasdaq Composite recorded 40 new highs and 20 new

lows.