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Tesla soars after Q2 delivery data

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Paramount Global ( PARAA ) gains on possible IAC bid

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Fed Chair Powell says risks becoming more balanced

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US job openings rise in May

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Indexes up; Dow 0.41%, S&P 0.62%, Nasdaq 0.84%

(Adds market details after close of trading)

By Ankika Biswas, Lisa Pauline Mattackal and Saeed Azhar

July 2 (Reuters) - Wall Street's main stock indexes

closed higher on Tuesday, boosted by gains in Tesla and

megacap growth stocks, but volumes were thin ahead of the July

Fourth holiday and the closely watched release of June nonfarm

payrolls on Friday.

The U.S. job openings and labor turnover survey, or JOLTS,

showed job openings increased in May after posting outsized

declines in the prior two months, but layoffs picked up amid

slowing economic activity.

The data is the first in this week's series of U.S. job

reports, particularly Friday's release of June nonfarm payrolls,

which will be crucial in assessing whether the U.S. labor market

remains resilient against the backdrop of decades-high interest

rates.

The Dow Jones Industrial Average rose 162.33 points,

or 0.41%, to close at 39,331.85, the S&P 500 gained 33.92

points, or 0.62%, to 5,509.01 and the Nasdaq Composite

gained 149.46 points, or 0.84%, to 18,028.76.

Tesla surged to its highest level since the start of January

after the EV maker reported a smaller-than-expected 5% drop in

vehicle deliveries in the second quarter.

Megacap stocks such as Apple ( AAPL ) rose 1.6%, while

Amazon.com ( AMZN ) and Alphabet also climbed, with

U.S. Treasury yields slipping across the board.

U.S. Federal Reserve Chairman Jerome Powell told a panel

that recent economic data represented "significant progress,"

though he noted that the Fed needed to see more before changing

policy.

"What the Fed really wants to see is a further click up in

unemployment and then a slowdown with regards to new job

creation," said Genter Capital Management CEO Dan Genter, who

added that the recent moderation in inflation could be a green

light for the Fed to start considering rate cuts.

AI chip leader Nvidia ( NVDA ) dropped 1.3%, with the trend

in other chip stocks largely mixed. Nvidia ( NVDA ) is up more than 147%

year-to-date.

Investors are divided over the sustainability of the market

rally in which the S&P 500 index has risen 14.75% in the first

half of the year.

"We see an additional 10% before year end, which is kind of

frightening because if we're at 5500 or so (on the S&P 500), 10%

on that means we really have to see earnings justify that type

of multiple," said John Lynch, chief investment officer of

Comerica Wealth Management.

Volume on U.S. exchanges was 9.89 billion shares, compared

with the 11.8 billion average for the full session over the last

20 trading days.

Trading volumes are expected to be light throughout the

week, with the equity market closing early on Wednesday and shut

all day Thursday for U.S. Independence Day.

The U.S. listing of Novo Nordisk fell

almost 1.7%, after U.S. President Joe Biden and Senator Bernie

Sanders called on the Danish drugmaker to cut prices of its

Ozempic and Wegovy drugs. Rival Eli Lilly ( LLY ) also dropped.

Paramount Global ( PARAA ) climbed 5.7% after news that

billionaire Barry Diller's digital-media conglomerate IAC

was exploring a bid to take control of the media giant.

Advancing issues outnumbered decliners by a 2.06-to-1 ratio

on the NYSE. There were 179 new highs and 97 new lows on the

NYSE.

The S&P 500 posted 15 new 52-week highs and 4 new lows,

while the Nasdaq Composite recorded 39 new highs and 196 new

lows.