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Indexes up: Dow 0.93%, S&P 500 0.58%, Nasdaq 0.54%

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Nike ( NKE ) rises after better-than-expected Q1 revenue forecast

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UBS lifts S&P 500 index's target on fading trade tensions

(Updates with afternoon trading levels)

By Kanchana Chakravarty and Nikhil Sharma

June 27 (Reuters) -

Wall Street's main indexes rose on Friday, pushing the S&P

500 and the Nasdaq to intraday record highs as investors pinned

their hopes on deeper interest-rate cuts and the U.S. striking

deals with its biggest trading partners.

The S&P 500 and the Nasdaq Composite both

rose more than 0.5%, surpassing their previous peaks touched in

February and December, respectively. The Nasdaq looked on course

to confirm a bull market, having recovered more than 20% from a

trough in April.

"I think the driver for that momentum clearly is the

dissipation of concerns over the magnitude of tariffs. That was

the biggest concern in the early April time frame and I think

that headwind seems to be dissipating a bit," said Art Hogan,

chief market strategist at B Riley Wealth.

Adding to the upbeat sentiment, Washington reached an

agreement with China on expediting rare-earth shipments to the

United States, a White House official said, days ahead of the

July 9 deadline for U.S. President Donald Trump's "reciprocal"

tariffs.

U.S. Treasury Secretary Scott Bessent said the Trump

administration's trade deals with other countries could be done

by Labor Day, citing the country's 18 main trading partners.

Investors are focusing on the interest-rate trajectory after

the Wall Street Journal reported that Trump toyed with the idea

of announcing U.S. Federal Reserve Chair Jerome Powell's

replacement by September or October.

Data on Friday showed U.S. consumer spending

fell

unexpectedly in May as the boost from consumers

preemptively buying goods such as motor vehicles ahead of

tariffs faded, while monthly inflation rose moderately,

supporting bets for rate cuts.

Traders now price in a 20.7% chance of a rate cut in July,

compared with 14.5% last week, according to CME Group's FedWatch

tool.

At 11:28 a.m. ET, the Dow Jones Industrial Average

rose 403.09 points, or 0.93%, to 43,789.88, the S&P 500

gained 36.14 points, or 0.58%, to 6,177.16, and the Nasdaq

Composite added 108.05 points, or 0.54%, to 20,275.96.

Ten of the 11 major S&P 500 sub-sectors rose. Energy

stocks were the only laggards, falling 0.5%.

Shares of Nvidia ( NVDA ), the world's most valuable

company, rose 1.8% to touch a record high, while other

tech-heavyweights including Amazon.com ( AMZN ) and Apple ( AAPL )

added 1.1% and 0.2%, respectively.

The benchmark S&P 500 and the tech-heavy Nasdaq

were on track for their best weekly performance in more

than a month, while the blue-chip Dow was set for a

weekly advance, if gains hold.

UBS Global Wealth Management raised its year-end target for

the S&P 500 to 6,200 from its prior forecast of 6,000, banking

on softening trade uncertainty.

Nike's ( NKE ) shares jumped 15.8% after it forecast a

smaller-than-expected drop in first-quarter revenue.

Retailer Lululemon Athletica ( LULU ) rose 1.6% after Nike's ( NKE )

results, while Hoka-owner Deckers Outdoor ( DECK ) added 2.7%.

Advancing issues outnumbered decliners by a 2.01-to-1 ratio

on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.

The S&P 500 posted 27 new 52-week highs and two new

lows, while the Nasdaq Composite recorded 70 new highs and 34

new lows.